Indian Benchmark Indices Open Flat as Mideast Tensions Escalate
At 9:15 a.m. IST, the Nifty 50 edged up by 0.13 per cent to 24,977.85, while the BSE Sensex gained 0.09 per cent, reaching 81,869.45.
Market Update at 10:00 AM: India’s benchmark indices opened on a cautious note on Tuesday amid escalating geopolitical tensions between Israel and Iran. Investors were watchful after former U.S. President Donald Trump called on Iranian citizens to leave Tehran as the conflict entered its fifth consecutive day.
At 9:15 a.m. IST, the Nifty 50 edged up by 0.13 per cent to 24,977.85, while the BSE Sensex gained 0.09 per cent, reaching 81,869.45.
Out of the 13 key sectoral indices, 10 opened in positive territory, though the gains remained modest. Broader market indices like the Nifty Smallcap and Midcap also inched up by nearly 0.1 per cent.
Meanwhile, U.S. stock futures were under pressure, and crude oil prices saw an uptick. Trump reportedly left the G7 summit in Canada earlier than scheduled, pointing to rising tensions in the Middle East and reiterating that Iran should have signed a nuclear agreement with the U.S.
Pre-Market Update at 8:00 AM: Indian equity markets are expected to open on a cautious footing on Tuesday, amid mixed global cues and ongoing geopolitical concerns involving Israel and Iran. As of 7:20 AM, GIFT Nifty futures hovered around 24,971, indicating a muted start with a 29-point dip from the previous close.
Asian indices reflected a mixed performance in early trade, while U.S. markets closed on a strong note overnight. Notably, the Nasdaq recorded its highest single-day percentage gain since May 27, helping lift overall sentiment.
On Monday, June 16, Foreign Institutional Investors (FIIs) offloaded Indian equities worth Rs 2,287.69 crore. In contrast, Domestic Institutional Investors (DIIs) continued their buying spree, injecting Rs 5,607.64 crore into the market. DIIs have now remained net buyers for 19 consecutive sessions.
India's unemployment rate rose to 5.6 per cent in May from 5.1 per cent in April, largely due to reduced agricultural activity. Female unemployment was slightly higher at 5.8 per cent, compared to 5.6 per cent for males, as per the latest labour force survey covering both urban and rural areas.
Tensions in the Middle East remain high. Iran has urged former U.S. President Donald Trump to intervene and persuade Israel to halt airstrikes. In response, Trump announced his early departure from the G7 summit and posted a cryptic message urging people to leave Tehran, intensifying concerns across global markets.
Indian benchmarks closed higher on Monday, snapping a two-day losing streak. The Sensex gained 677.55 points (0.84 per cent) to finish at 81,796.15, while the Nifty 50 rose by 227.90 points (0.92 per cent) to settle at 24,946.50, supported by broad-based buying across sectors.
Asian markets showed a mixed tone ahead of the Bank of Japan’s policy review. Meanwhile, Wall Street advanced as diplomatic signals from Iran helped ease war-related worries. The Dow Jones rose 317.30 points to 42,515.09, the S&P 500 climbed 56.14 points to 6,033.11, and the Nasdaq surged 294.39 points to close at 19,701.21.
Crude oil prices edged higher amid growing geopolitical risks. Brent crude rose 1.58 per cent to USD 74.39 a barrel, while WTI crude gained 1.56 per cent to USD 72.89. Gold prices rebounded by 0.5 per cent to USD 3,399.90 an ounce, as investors turned to safe-haven assets before the U.S. Fed's policy meeting.
The U.S. dollar remained stable, with the dollar index slightly up at 98.23. The Japanese yen strengthened to 144.70 per dollar ahead of the Bank of Japan’s monetary policy decision.
For today, Aditya Birla Fashion and Retail, Birlasoft, Central Depository Services (India), Chambal Fertilisers and Chemicals, Housing and Urban Development Corp, Indian Renewable Energy Dev Agency, Manappuram Finance, RBL Bank and Titagarh Rail Systems Ltd continue to remain under the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.