Indian Markets May Open Flat as FIIs Turn Buyers but Middle East Concerns Persist
On Wednesday, June 18, Nifty 50 and Sensex are likely to start on a subdued note amid mixed cues from global peers.
As of 7:32 AM, the GIFT Nifty was trading near the 24,833 mark, down 29 points from its previous close. This suggests that Indian markets are likely to witness a muted start.
This Wednesday morning, the Indian markets are balancing between 'One Good News and One Bad News.'
Asian markets were seen trading mixed on Wednesday, while the U.S. stock market ended lower in overnight trade as traders brace for the FOMC outcome.
Regarding the institutional flow, the DIIs in Indian equities have remained net buyers for the past 21 trading sessions.
On Tuesday, June 17, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth ₹1,482.77 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹8,207.19 crore during the same session.
Tensions between Israel and Iran escalated sharply overnight, leading the United States to bolster its military presence in the region. In light of the growing unrest, President Donald Trump held a meeting with his national security advisors. While the specifics of any planned actions remain unclear, the developments have heightened diplomatic concerns. The U.S. continues to walk a fine line between asserting deterrence and avoiding a wider regional conflict.
On Tuesday, the Indian stock market closed in the red, with the Nifty 50 slipping below the 24,900 mark. The Sensex fell by 212.85 points, or 0.26%, to end the day at 81,583.30. Meanwhile, the Nifty 50 recorded a loss of 93.10 points, or 0.37%, finishing at 24,853.40.
Oil prices rose while Asian peers were seen trading mixed, as growing tensions in the Middle East fueled worries about a potential increase in U.S. involvement in the region.
U.S. stock markets closed lower on Tuesday, weighed down by continued tensions in the Middle East as the Israel-Iran conflict entered its fifth day. Heightened geopolitical risks and news of the U.S. deploying fighter jets to the region kept investor sentiment under pressure.
All three major indices extended their declines in the second half of the session. The Cboe Volatility Index (VIX), a measure of market fear, climbed to 21.6, marking its highest closing level since May 23. Going forward, all eyes will be on FOMC outcome.
The Dow Jones Industrial Average dropped 299.29 points (0.70%) to settle at 42,215.80. The S&P 500 shed 50.39 points (0.84%) to close at 5,982.72, while the Nasdaq Composite slipped 180.12 points (0.91%) to end at 19,521.09.
Oil prices continued to rise in early Wednesday trade, following a sharp 4% rally in the previous session. The upward trend is largely attributed to fears that the conflict between Iran and Israel could disrupt global oil supplies. As of 5:59 AM IST, Brent crude was trading at $76.64 per barrel, up by 19 cents or 0.25%, while U.S. West Texas Intermediate (WTI) saw a gain of 23 cents, or 0.31%, to settle at $75.07 per barrel.
Gold prices fell to around $3,380 per ounce on Wednesday as a stronger U.S. dollar pulled them down, despite rising geopolitical tensions that usually support safe-haven assets like gold. Meanwhile, silver prices moved in the opposite direction, jumping to their highest level in more than 13 years.
The U.S. dollar remained steady at 98.7 on Wednesday, sustaining the current level ahead of the Federal Reserve’s policy announcement. The Fed Reserve is anticipated to keep interest rates unchanged, and attention is expected to shift toward its future guidance, especially in light of ongoing tariff tensions and global geopolitical concerns.
Disclaimer: The article is for informational purposes only and not investment advice.
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