Pre-open Trade Signals Lower Opening For Markets As Iran Tensions Lift Crude Prices; Dabur, BSE In Focus

Mumbai, May 8:Markets traded lower at pre-open on Friday suggesting a weak start for benchmark indices as a climb in crude oil prices after US and Iran exchanged fire in the Middle East weighed on sentiment.

Nifty 50 traded at 24,194.85 in pre-open, which is lower than its previous close of 24,326.65, while the Sensex hovered around 77,825, again lower than yesterday’s close of 77,844.52. All this pointed to the benchmark indices declining at the start of the trade.

Nifty 50 futures confirmed the trend, trading at 24,277, below Nifty’s previous close of 24,326.65. 

To be sure, the markets had ended flatyesterday after much see-saw, with auto, defence and capital goods stocks helping them offset profit booking.

The negative domestic cues at the pre-open mirrored weakness across Asian markets, which declined sharply after crude prices climbed. Investors turned risk-averse after reports of renewed conflict involving Iran raised concerns about possible disruptions to oil supply routes in the Middle East.

Higher crude oil prices are generally viewed as negative for India, one of the world’s largest oil-importing nations, as they can widen the current account deficit and stoke inflation. Sectors such as aviation, paints, oil marketing companies and logistics may remain under pressure if crude continues to rise.

Wall Street also ended lower overnight, with the Dow Jones, S&P 500 and Nasdaq all closing in negative territory after investors booked profits following a recent rally in technology shares. While artificial intelligence-linked counters continued to show resilience, broader market sentiment remained fragile due to geopolitical uncertainty and caution ahead of key U.S. payroll data later in the day.

Back home, stock-specific action is likely to remain strong amid the ongoing earnings season.

Shares of Dabur India will be closely watched after the FMCG major reported its quarterly results and pointed to a second round of price hikes as costs escalate due to Iran war.

BSE Ltd will also remain in focus after India’s oldest exchange announced its earnings, reporting a more than 60% jump in its profit for the March quarter.

Apart from earnings, traders may also keep an eye on movements in crude oil prices, foreign institutional investor activity and global market cues through the day.

After a strong rally in recent sessions, some profit-booking could emerge in rate-sensitive and consumption-linked sectors, while defensive pockets of the market may see relative outperformance amid the uncertain global backdrop.

Source:

• Exchanges