Pre-Open Trade Suggests Firm Start For Indian Markets Amid Global Rally, Softer Oil; Bajaj Auto, Paytm in Focus

Mumbai, May 7: Indian markets rose at pre-open on Thursday indicating the benchmark indices would be continuing their rise at open as correcting crude prices on Iran peace deal possibility and a global rally bolster sentiment.

The Nifty 50 was trading at 24,397 in pre-open, which is above yesterday’s close of 24,330.95, while the Sensex was hovering at 78,274, again above the previous close of 77,958.52.

Gift Nifty futures reinforced the pre-open trends, trading at 24,435, higher than Nifty’s previous close of 24,330.95. 

The benchmark indices had already ended sharply higher in the previous session, with the Sensex and Nifty 50 gaining around 1.2% each amid renewed foreign buying, easing oil prices, stable corporate earnings and the government’s credit guarantee scheme for businesses affected by the Iran war.

Global cues remained supportive overnight. Wall Street touched record highs after hopes of a possible de-escalation in Middle East tensions pushed oil prices lower and boosted risk appetite. Asian markets also rose, tracking gains in U.S. equities as Japan’s Nikkei surged to a record high.

Crude oil prices extended their decline after reports suggested progress on a potential Iran peace arrangement, easing concerns over supply disruptions and inflationary pressures. Lower oil prices are generally seen as positive for India, which relies heavily on crude imports, as they help contain inflation and reduce pressure on the current account deficit.

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

Shares of Bajaj Auto are expected to remain in focus after the automaker reported a stronger-than-expected March-quarter profit and announced a share buyback worth Rs 5,633 crore. The company’s earnings performance is likely to boost sentiment in the auto pack, which has already seen renewed buying interest in recent sessions.

Paytm will also be closely watched after the fintech firm swung to profit in the March quarter.

Apart from earnings, investors will also keep an eye on foreign fund flows, crude oil movement and global developments for further direction. Analysts expect sentiment to remain positive in the near term as long as geopolitical tensions continue to ease and global risk appetite stays firm.

Source:

• Exchanges