The recent correction in Indian equities has largely been driven by geopolitical uncertainty, high valuations, foreign investor selling, elevated crude prices and slower earnings growth. Analysts say markets may remain volatile and range-bound in the near term, particularly if crude prices stay elevated. However, resilient domestic growth, institutional inflows and corporate earnings should provide support. Further, sentiment could improve meaningfully if geopolitical tensions ease and crude prices stabilise.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 35.5 points, or 0.15 per cent, at 23,153, signaling that Dalal Street was headed for a negative start on Monday.
Tech View: On the downside, 23,000 remains the immediate support, followed by 22,700. On the higher end, 23,200–23,300 is the immediate resistance zone. A sustained move above 23,300 could improve the technical setup, while a decisive break below 23,000 may resume the downtrend.
India VIX: India VIX, which is a measure of the fear in the markets, fell 4.16% to settle at 12.16 levels.
Share markets made a cautious start on Monday as oil prices popped higher again amid doubts the United States and Iran will reach a truce anytime soon, keeping bonds under pressure ahead of a week packed with economic news.
S&P 500 futures fell 0.3% as of 9:59 a.m. Tokyo time
Hang Seng futures were little changed
Nikkei 225 futures (OSE) rose 0.2%
Japan’s Topix rose 0.6%
Australia’s S&P/ASX 200 rose 0.3%
Euro Stoxx 50 futures rose 0.4%
Wall Street ended higher on Friday, lifted by Microsoft and other AI-related technology stocks, while high oil prices and a recent surge in US Treasury yields kept investors on edge. Gains in the S&P 500 and Nasdaq capped a volatile week driven by uncertainty about what industries will win and lose from artificial intelligence, and by concerns about the US war with Iran and a surge in US Treasury yields.
Gold prices fell more than 1% on Monday as a rise in oil prices heightened inflation concerns and reinforced expectations of further Federal Reserve interest rate hikes.
The dollar inched higher to hold near a two-month high on Monday, as the US-Iran standoff continued to push up oil prices while investors looked ahead to a data-packed week for more clues on inflation and central banks' moves.
Oil prices rebounded more than 1% on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.
Read more: Ahead of Market: 10 things that will decide stock market action on Monday
Stocks in F&O ban today
1) SAIL
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Read more: IPO Calendar: 20 new issues to open for subscription in busiest week of the year
Foreign portfolio investors net sold shares worth Rs 3,694 crore on Friday. DIIs, meanwhile, were net buyers at Rs 2838 crore.
The rupee appreciated 19 paise to close at 95.80 against the US dollar on Friday, holding above the 96-mark, on improved global risk sentiment and possible intervention by the Reserve Bank.
Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here
