Shares Edge Lower At Pre-Open Signalling Lower Start For Sensex, Nifty

Mumbai, May 26: Indian shares edged lower at pre-open suggesting a lower start for benchmark indices as oil prices rebound over fresh US strikes in Iran derailing peace hopes.

Nifty 50 ticked down 0.08% at pre-open while the Sensex edged lower 0.15%, with the Gift Nifty futures also showing a downtrend, trading at 24,025.50, which is slightly below Nifty’s Monday close of 24,031.7.

Markets had scaled a two-week high yesterday as US and Iran were seen nearing a peace deal to end the three-month war.

Also, Nifty 50’s May derivatives contracts are expiring so volatility is expected today.

The spotlight will be falling on fuel retailers IOC, HPCL and BPCL, whether they can extend their rally from yesterday amid rising oil prices. The oil marketing companies had jumped after raising fuel prices for the fourth time yesterday in 10 days.

Also in focus will be Suzlon which saw a Q4 earnings miss.

As for global cues, Asian markets traded mixed on Tuesday as investors turned cautious after fresh U.S. strikes in Iran weakened optimism surrounding a potential peace agreement in West Asia.

Regional equities largely moved within a narrow range. Japan’s Nikkei slipped 0.4%, while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7%. South Korea’s Kospi surged 3%, supported by gains in technology and industrial stocks, while Hong Kong’s Hang Seng index edged 0.17% higher.

Investor sentiment remained restrained amid uncertainty surrounding global interest rates, geopolitical developments and fluctuating energy prices.

Oil prices rebounded after suffering steep losses in recent sessions. The recovery came after the United States launched what it described as defensive strikes on missile sites and boats in southern Iran, reigniting concerns that diplomatic negotiations aimed at easing regional tensions could lose momentum.

The latest military action dampened hopes of a swift breakthrough between Washington and Tehran that could potentially reopen the Strait of Hormuz and stabilise global crude supply routes. Global markets had earlier rallied on expectations that improving diplomatic ties would help cool oil prices and ease inflationary pressures.

U.S. markets remained shut on Monday due to the Memorial Day holiday, leaving global investors without fresh direction from Wall Street.

In the absence of U.S. cash trading, market participants focused on movements in commodities, currencies and sovereign bond yields. Treasury yields stayed elevated, reflecting persistent inflation concerns and caution over the outlook for global monetary policy.

The dollar traded mixed against major currencies, although safe-haven demand provided some support following the renewed tensions in Iran. Analysts cautioned that sustained volatility in oil prices could complicate inflation trends and influence the interest-rate path of major central banks.

European equities, meanwhile, extended their rally, with the pan-European STOXX 600 index climbing to over two-month highs.

The gains were driven by optimism that diplomatic engagement in West Asia could eventually help ease pressure on energy markets despite the recent flare-up in tensions. Banking, airline and technology stocks led advances across the region, while expectations of softer long-term oil prices improved broader risk appetite.

Investor sentiment in Europe also remained supported by continued enthusiasm around artificial intelligence-linked sectors and improving appetite for cyclical stocks.

Source:

• Exchanges