New Delhi [India], September 8 (ANI): Indian markets opened in the red on Tuesday as persistent geopolitical headwinds and hardening crude oil prices dampened domestic sentiment. The BSE Sensex fell 278.64 points, or 0.37 per cent, to stand at 75,854.17, while the NSE Nifty 50 slipped 36.05 points, or 0.15 per cent, to trade at 23,743.10.
Ajay Bagga, Banking and Market expert, stated that “Indian markets are directionless, with a 2 year non-return scenario for the headline indices. Elevated oil prices and a massive supply of IPOs/OFS issuances is keeping secondary markets liquidity constrained further.”
He also mentioned that international developments are dominating market movements.
“US markets were shut Monday for Labor Day, so US futures are doing the talking, pointing to a cautious open once cash markets reopen, with this week's US CPI print now the swing factor for Fed rate-hike odds,” Bagga said.
At the time of reporting, Dow Jones Futures slid 328.44 points, or 0.61 per cent, to trade at 53,085.81, the S&P 500 fell 29.11 points (0.38%) to 7,718.60, while the Nasdaq slipped 77.07 points (0.29%) to finish at 26,506.99.
Bagga also highlighted that the Asian markets are mixed-to-lower on Tuesday morning as Middle East tensions push oil higher and add to inflation worries.
At the time of reporting, Brent Crude gained USD 0.36, or 0.37 per cent, to stand at USD 97.52 per barrel, while Crude Oil rose USD 0.41, or 0.45 per cent, to USD 92.95 per barrel. Gold also witnessed upward momentum, advancing USD 28.98, or 0.66 per cent, to trade at USD 4,433.96 per ounce.
“Brent crude touched USD 97/barrel early this week, a near seven-week high, up roughly 8% over the past week — OPEC+ held October output flat at September levels on Sunday, so no incremental supply is coming to cap the move,” Bagga added. “Oil near USD 97 and a Fed decision two weeks out — global markets are pricing geopolitical risk and inflation risk at the same time, which is the combination central banks hate most. ”
Regarding the broader Asian indices, Rajesh Palviya, Head of Research at Axis Direct, observed that “Asian markets are largely holding firm this morning….GIFT Nifty is trading around 23,797, indicating a largely flat opening.”
At the time of reporting, the GIFT Nifty dropped 80.50 points, or 0.34 per cent, to 23,746.00. Across the broader region, Singapore’s Straits Times fell 32.27 points (0.56%) to 5,760.01, and Thailand’s SET Composite edged lower by 1.16 points (0.07%) to 1,617.66.
In contrast, South Korea’s KOSPI led regional gains with a sharp advance of 164.24 points (2.35%) to 7,159.63. Japan’s Nikkei 225 climbed 230.16 points (0.35%) to 66,630.00.
“The near-term undertone remains cautious as the Nifty trades below the 23,800 mark. Immediate support is placed at 23,700, below which the index could slip towards 23,550, while resistance is seen at 23,950 and 24,150,” Palviya added. (ANI)
Indian markets open lower amid geopolitical headwinds, rising crude prices
