Nifty May Open Positive Despite Rising Oil Prices and Geopolitical Tensions; Trump Urges for a Deal
On Monday, June 16, GIFT Nifty and global cues are showing signs of improvement. As of 7:16 AM, the GIFT Nifty was trading near the 24,777 mark, up 39 points from its previous close. This suggests that Indian markets are likely to open with modest gains.
However, the key question remains: Will this positive start and improving sentiment be short-lived, given the ongoing geopolitical risks and rising oil prices?
The U.S. President Donald Trump says Israel-Iran should make a deal, adding calls and meetings are taking place as the escalation stretches into a third day.
Asian markets opened on a positive note, and US stock futures edged higher.
Apart from the geopolitical, this week, market participants will closely monitor several key factors, such as the upcoming US Federal Reserve policy decision, foreign investment trends, and other significant global and domestic macroeconomic indicators.
Regarding the institutional flow, the DIIs in Indian equities have remained net buyers for the past 19 trading sessions.
On Friday, June 13, Foreign Institutional Investors (FIIs) were net sellers, having sold equities worth ₹1,233.47 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹2,906.13 crore during the same session.
Indian stock markets closed in the red on Friday, marking a second straight day of decline amid rising geopolitical tensions between Israel and Iran. The Sensex slipped by 573.38 points, or 0.70%, finishing at 81,118.60, while the Nifty 50 dropped 169.60 points, or 0.68%, to settle at 24,718.60.
Asian markets traded higher ahead of a slew of data from China.
U.S. stock markets closed in the red on Friday, with losses led by financial and technology shares. The Dow Jones Industrial Average dropped 1.79% to settle at 42,197.79. The S&P 500 slipped 1.13%, ending the session at 5,976.97, while the Nasdaq Composite declined 1.30% to finish at 19,406.83. On a weekly basis, the Dow registered a 1.3% loss, the S&P 500 edged down by 0.4%, and the Nasdaq shed 0.6%.
Crude oil prices climbed further, continuing Friday's upward trend, as renewed hostilities between Israel and Iran on Sunday fueled concerns about potential supply disruptions from the Middle East. Brent crude edged up by 0.24% to $74.41 per barrel, while US WTI crude advanced 0.37% to $73.25.
Gold prices inch higher, approaching a two-month peak, driven by increased demand for safe-haven assets amid escalating tensions between Israel and Iran. Spot gold rose 0.4% to $3,447.07 per ounce, having earlier touched its highest point since April 22.
Disclaimer: The article is for informational purposes only and not investment advice.
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