Indian stock market: 7 key things that changed for market over weekend- Gift Nifty, Israel-Iran war to oil prices
Indian stock market: Indian indices – Sensex and Nifty 50 – are likely to open on subdued note on Monday amid escalating tensions in Middle East.
Asian markets plunged on Monday, meanwhile, US stock market closed in red, following the United States’ strike on three nuclear facilities in Iran.
On Friday, India’s benchmark stock indices ended a three-day losing streak, rising over 1%, driven by short-covering ahead of the upcoming monthly derivatives expiry and relief over U.S. President Donald Trump’s decision to delay involvement in Israel’s offensive against Iran.
The Nifty 50 and S&P BSE Sensex both climbed 1.3%, closing at 25,112.40 and 82,408.17 points, respectively. The rally in the Nifty 50 was supported by strong gains in major stocks including HDFC Bank, Reliance Industries, Bharti Airtel, and ICICI Bank.
“Markets witnessed consolidation after the recent spell of subdued trend, as strong European cues and positive Dow Futures triggered a massive rally in local benchmarks. Investors also resorted to short covering ahead of next week’s monthly derivatives expiry. Despite the rebound, investors would still maintain caution due to the ongoing West Asia conflict, as any spike in crude oil prices owing to escalation in tension could fuel uncertainty and spook markets,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asia-Pacific markets tumbled on Monday following the United States’ strike on three nuclear facilities in Iran, which drove up oil prices and heightened investor concerns over a potential escalation in the Middle East conflict.
Japan’s Nikkei 225 dropped 0.58%, while the broader Topix index slipped 0.48%.
South Korea’s Kospi index declined 1.16%, and the tech-heavy Kosdaq saw a sharper fall of 1.99%.
Meanwhile, futures for Hong Kong’s Hang Seng index were at 23,396, indicating a weaker start compared to its previous close of 23,530.48.
Gift Nifty Today
Gift Nifty was trading around 24,977 level, a discount of nearly 152 points from the Nifty futures’ previous close, indicating a muted start for the Indian stock market indices.
Wall Street
U.S. equity futures declined during early Asian trading hours after American military strikes in Iran. Dow Jones Industrial Average futures dropped 109 points, or 0.3%, while futures linked to the S&P 500 and Nasdaq 100 slipped 0.3% and 0.4%, respectively.
On Friday, two of Wall Street’s major indexes closed lower as investors monitored escalating tensions in the Middle East and weighed the Federal Reserve’s outlook on interest rate cuts. The S&P 500 dipped 0.22% to close at 5,967.84, marking its third straight loss. The Nasdaq Composite slid 0.51% to end at 19,447.41, whereas the Dow Jones Industrial Average inched up by 35.16 points, or 0.08%, finishing at 42,206.82.
US joins Israel-Iran war
The world watched with tension on Sunday as Iran prepared to respond to a major U.S. assault on its nuclear facilities—marking the most significant Western military action against the country since its 1979 revolution and carried out in coordination with Israel.
A day after the U.S. deployed 30,000-pound bunker-buster bombs targeting the mountain above Iran’s Fordow nuclear site, Iran pledged to defend itself. Meanwhile, U.S. leaders called on Tehran to exercise restraint, even as anti-war protests began to surface in cities across America.
US Dollar
The U.S. dollar edged up modestly on Monday as cautious investors turned to safer assets, though the gains were limited, indicating that markets were awaiting Iran’s reaction to U.S. strikes on its nuclear facilities, which have heightened tensions in the Middle East.
In the currency market, the dollar strengthened against most major currencies. It rose by 0.25% against the Japanese yen, reaching 146.415 after hitting a one-month high earlier in the day.
Crude Oil Prices
Oil prices surged on Monday to their highest levels since January, driven by concerns over supply after the United States joined Israel in striking Iran’s nuclear facilities over the weekend.
As of 0117 GMT, Brent crude futures rose by $1.92, or 2.49%, to $78.93 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed $1.89, or 2.56%, to $75.73 per barrel.
Brent has climbed 13% since the conflict started on June 13, while WTI has increased by approximately 10%.
Gold Prices
Gold prices are likely to be under scanner following a significant escalation in the Iran-Israel conflict, as former U.S. President Donald Trump announced America’s involvement in the war.
On Friday, gold prices remained largely unchanged. Spot gold hovered at $3,369.63 per ounce—its lowest level since June 12—while the overall index recorded a weekly decline of 1.8 per cent. Meanwhile, U.S. gold futures dropped by 0.7 per cent to $3,385.50.
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