Pre-open Points to Flat Start for Benchmarks as Asia Declines

Mumbai, July 2: Indian shares flatlined at pre-open signalling a muted start for benchmarks as shares declined across Asia even as U.S.-Iran talks showed signs of progress inspiring a further fall in oil prices. 

Nifty 50 rose 0.03% and the Sensex advanced 0.09% at pre-open. 

To be sure, both benchmarks snapped their two-day losing streak yesterday, ending higher amid broad-based buying.  

 Spotlight will be falling on V-Mart Retail which saw a 23% year-on-year increase in revenue for the April-June quarter, aided by a 9% growth in same-store sales. Indian Bank said its gross advances expanded 13.9% year-on-year in the June quarter, while total deposits rose 13.3%. Punjab & Sind Bank saw 19.5% year-on-year growth in gross advances for the June quarter, while total deposits increased 12.2%.  

As for global cues, Asian equities traded lower on Thursday as investors turned risk-averse after the recent rally in global markets, with profit-booking in technology shares ahead of key U.S. economic data. 

Japan’s Nikkei 225 fell 1.2%, while South Korea’s Kospi dropped 3.6%, led by declines in semiconductor stocks amid valuation concerns. The MSCI Asia-Pacific Index excluding Japan slipped 0.16%, reflecting a cautious mood across regional markets. 

Despite easing geopolitical tensions in the Middle East, investors largely stayed on the sidelines, preferring to await the U.S. jobs report for clearer signals on the timing of potential Federal Reserve rate cuts. 

U.S. equities ended Wednesday’s session on a mixed note after a volatile trading day, as investors weighed improving geopolitical developments against lingering uncertainty over the outlook for interest rates. 

The S&P 500 and the Nasdaq Composite were pressured by weakness in semiconductor stocks, which offset gains elsewhere in the technology sector. Meta Platforms bucked the trend, rallying after reports that the social media giant plans to build a cloud business to offer additional AI computing capacity. 

Markets also entered the second half of the year cautiously, with investors awaiting fresh economic data while monitoring developments in the Middle East. 

European equities snapped their recent winning streak as investors locked in profits and assessed the durability of the emerging U.S.-Iran peace efforts. 

The pan-European STOXX 600 index closed 0.4% lower, with caution prevailing despite hopes that easing geopolitical tensions could reduce disruptions to global energy supplies. Investors also remained mindful of broader concerns over the pace of global economic growth. 

Crude oil prices fell for a second consecutive session after indirect talks between the United States and Iran in Doha concluded with signs of progress, easing concerns over potential supply disruptions through the Strait of Hormuz. 

Brent crude traded near $71 a barrel, while West Texas Intermediate (WTI) hovered below $68. Expectations of higher OPEC+ output in the coming months further weighed on prices. 

For India, lower crude prices are generally positive as they help ease imported inflation, improve the current account balance and support earnings for sectors such as aviation, paints, tyres and oil marketing companies. 

Source

• Exchanges