Nifty, Sensex Likely to Open Flat Amid Global Tensions; Stock-Specific Movements May Dominate
Foreign and domestic institutional investors have continued to support Indian equities. On June 19, FIIs recorded net purchases worth Rs 934.62 crore, while DIIs added shares worth Rs 605.97 crore.
Pre-Market Update at 7:30 AM: Indian markets are expected to begin Friday’s session on a subdued note, influenced by mixed signals from global peers and escalating tensions in the Middle East. Although overall sentiment remains cautious, selective stock movements may continue as a key theme.
As of 7:18 AM, GIFT Nifty hovered around 24,793, indicating a marginal uptick of 6 points from the previous session, suggesting a lackluster opening for Nifty 50 and Sensex. While most Asian indices were trading higher, U.S. stock futures edged down as uncertainty loomed over the Israel-Iran conflict. Wall Street was closed for the Juneteenth holiday.
Foreign and domestic institutional investors have continued to support Indian equities. On June 19, FIIs recorded net purchases worth Rs 934.62 crore, while DIIs added shares worth Rs 605.97 crore. Notably, DIIs have remained net buyers for 23 straight trading sessions, signaling consistent domestic support.
Geopolitical tensions have escalated with Israel launching strikes on Iranian nuclear facilities. Iran retaliated with drone and missile attacks, including one that reportedly hit a hospital in Israel. The White House has stated that President Trump may announce a decision regarding U.S. involvement within the next two weeks.
Indian indices closed slightly lower on Thursday. The Nifty 50 ended just under 24,800 after slipping 18.80 points (0.08 per cent), while the Sensex fell 82.79 points (0.10 per cent) to finish at 81,361.87.
Asian markets traded in a narrow range on Friday as investors reacted to the U.S. Federal Reserve’s decision to maintain status quo on interest rates. In China, the central bank held both its one-year and five-year LPR steady at 3.0 per cent and 3.5 per cent, respectively. Japan reported core inflation rising to 3.7 per cent in May, signaling sustained price pressures.
Crude oil prices dipped slightly, though they remain on track for a third weekly gain due to geopolitical risks. Brent crude settled at USD 77.36 per barrel, down 1.89 per cent for the session but up 3.9 per cent for the week. WTI crude saw mixed movement, with the July contract at USD 76.00 and August futures climbing to USD 74.00.
Gold prices held firm amid elevated geopolitical uncertainty. Spot gold traded near USD 3,367.60 per ounce, mostly unchanged, despite a weekly decline of nearly 1.9 per cent.
For today, Aditya Birla Fashion and Retail, Biocon, Central Depository Services, Housing and Urban Development Corp, Manappuram Finance and Titagarh Rail Systems continue to remain under the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.