Pre-Open Points to Positive Start For Benchmarks After Crash 

Mumbai, July 9: Indian shares rose at pre open on Thursday signalling a positive start for Nifty and Sensex after the benchmarks logged their steepest single-day decline in more than three months in the previous session.

Nifty 50 rose 0.2% and Sensex advanced 0.1% at pre open while Gift Nifty increased 0.4%.

This comes as the U.S. military launched fresh strikes on Iran on Wednesday to keep the Strait of Hormuz open to shipping, after President Donald Trump said the interim deal to end the conflict was “over.” Oil has climbed and is trading at $79 per barrel.

Investor focus will also shift to the June-quarter earnings season, which begins on Thursday with results from India’s largest IT services company, Tata Consultancy Services (TCS). The company’s commentary on demand, deal wins and the global technology spending outlook will set the tone for the rest of the earnings season.

Among individual stocks, Tata Steel said its India crude steel production and deliveries rose 11% year-on-year during the April-June quarter, reflecting healthy domestic demand.

Phoenix Mills reported a 32% year-on-year increase in consumption across its retail portfolio in the first quarter, while adding that leasing activity in its office portfolio remained robust.

As for global cues, Asian equities traded mixed on Thursday as investors balanced strength in select technology shares against mounting concerns over higher energy prices and their impact on global growth.

Japan’s Nikkei advanced about 2%, while South Korea’s Kospi slipped 1.3%. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.4%, reflecting cautious sentiment across the region.

Investors continued to monitor developments in the Middle East after renewed US military action against Iran heightened fears of supply disruptions and reignited concerns over inflation.

US stocks swung sharply overnight after President Donald Trump declared the interim agreement with Iran was “over” following fresh US strikes.

The Dow Jones Industrial Average fell 1.09%, marking the biggest decline among the three benchmark indices, while the S&P 500 slipped 0.28%. The Nasdaq Composite bucked the trend to close marginally higher, supported by gains in Nvidia and other technology stocks.

The escalation in geopolitical tensions lifted oil prices and dampened investor appetite for risk, with traders increasingly worried that persistently high energy prices could fuel inflation and delay interest rate cuts by major central banks.

Crude oil prices extended their rally on Thursday after fresh US strikes against Iran raised concerns over potential supply disruptions in the Middle East. Brent crude climbed 1.3% to $79.04 a barrel after surging in the previous session.

The latest gains followed Trump’s declaration that the interim peace agreement with Iran was “over”, prompting renewed military operations aimed at securing the Strait of Hormuz after attacks on commercial vessels. The strategic waterway, through which roughly a fifth of global oil shipments pass, remains under close watch as shipping activity slows and insurance costs rise amid escalating hostilities.

The sustained rise in crude prices has renewed fears of higher inflation and slower economic growth, pushing global bond yields higher and weighing on investor sentiment. For India, which imports more than 85% of its crude oil needs, elevated oil prices pose risks to inflation, the current account deficit and corporate profitability.

Source:

• Exchanges