Stock Markets Pre-open Points to Flat Start For Benchmarks as Middle East Weighs on Sentiment

Mumbai, June 29: Indian shares flatlined at pre-open signalling a muted start for benchmarks as Iran and US agreed to halt attacks and renew talks inspiring hopes that the ceasefire could hold. 

Nifty 50 edged down 0.02% while Sensex edged down 0.08% at pre-open.  

Indian benchmark indices had ended the previous week with a third successive gain as easing crude oil prices, which had returned to pre-Iran conflict levels, and recent initiatives to strengthen the rupee and attract overseas investment improved market sentiment.  

Investors also await an expected reshuffle of the Union Council of Ministers ahead of the Monsoon Session of Parliament, PTI reported. 

Spotlight will be falling on Kotak Mahindra Bank, Torrent Power and HCLTech. Ashok Vaswani will step down as Kotak Mahindra Bank’s Managing Director and CEO at the end of his tenure on December 31, 2026, with the lender saying he will not seek another term. Torrent Power has wrapped up its Rs 3,632-crore acquisition of Nabha Power from L&T Power Development, strengthening its generation portfolio. HCLTech has concluded its investment in AI startup Sarvam AI, acquiring a 10.46% equity stake in the company. 

As for global cues, Asian equities traded lower after fresh U.S.-Iran strikes over the weekend rekindled geopolitical concerns, prompting investors to dial back risk exposure. Japan’s Nikkei fell 0.7%, while South Korea’s Kospi declined 1.7%, with technology shares leading the losses. The broader MSCI Asia-Pacific index outside Japan also edged lower, reflecting a cautious mood across regional markets. 

 While markets are not yet pricing in a major disruption to global energy supplies, investors remain wary of potential risks to shipping through the Strait of Hormuz, a key artery for global crude exports. 

Oil prices climbed in Asian trade, clawing back a portion of last week’s losses as traders factored in a fresh geopolitical risk premium. Brent crude traded above $72 a barrel, while U.S. West Texas Intermediate hovered around the $70 mark. 

Higher crude prices could cap gains in Indian equities, particularly in sectors sensitive to rising input costs, including aviation, paints, chemicals and oil marketing companies. Airline stocks, which rallied strongly last week on expectations of lower aviation turbine fuel (ATF) costs, may witness profit-booking if oil prices continue to climb. 

On the other hand, upstream oil producers and exploration companies could remain in focus as firmer crude prices improve their earnings outlook. 

Despite the weak tone in Asia, U.S. stock index futures pointed to a positive start. Dow futures were up 0.3%, while futures tied to the S&P 500 and Nasdaq each gained 0.6%, indicating investors expect the latest Middle East flare-up to remain contained. 

Source

• Exchanges