- Indian markets may open higher, influenced by GIFT Nifty’s gains.
- Geopolitical tensions, US-Iran talks, and Strait of Hormuz loom.
- Crude oil prices spiked, while gold and silver declined.
Share Market Update: Indian equity markets are expected to open on a cautiously positive note on Monday, with early indicators suggesting mild gains even as geopolitical tensions in West Asia continue to keep investors on edge.
The GIFT Nifty, a key pre-market indicator for domestic equities, was trading higher at 24,466, up 97.50 points or 0.40 per cent, pointing to a firm start for benchmark indices.
However, the upside may remain limited as traders adopt a wait-and-watch approach ahead of the next round of US-Iran talks scheduled later in the day.
West Asia Tensions Escalate Ahead Of Talks
Geopolitical concerns resurfaced after fresh developments in the Gulf region. The situation intensified following the seizure of an Iranian-flagged cargo vessel by US forces, while Iran reportedly targeted commercial movement through the Strait of Hormuz.
The ceasefire, which is due to expire shortly, appears increasingly fragile, with both sides hardening their positions. Iran has also indicated reluctance to engage in fresh negotiations, adding to uncertainty around the outcome of the upcoming talks.
Disruptions to shipping activity in the Strait, a key global energy corridor, remain a critical risk factor for markets.
Global Markets Mixed Amid Uncertainty
Asian markets traded with a positive bias in early deals, as investors balanced geopolitical risks with hopes of a diplomatic breakthrough.
Japan’s Nikkei 225 rose nearly 1 per cent, while South Korea’s Kospi gained over 1 per cent. However, Australia’s S&P/ASX 200 edged lower, reflecting mixed regional sentiment.
US futures showed some strength, with S&P 500 and Dow Jones futures trading higher, while the Nasdaq had ended the previous session with gains.
Oil Prices Spike On Supply Concerns
Crude oil prices surged sharply in early trade, reacting to renewed tensions and concerns over supply disruptions.
Brent crude rose nearly 5 per cent to around $94.72 per barrel, after briefly climbing even higher during Asian hours. The spike reflects fears that restricted movement through the Strait of Hormuz could tighten global energy supplies.
Precious Metals Decline As Dollar Firms
Gold and silver prices moved lower, with futures declining 0.95 per cent and 1.49 per cent, respectively.
The fall in precious metals comes as the US dollar strengthened and inflation concerns resurfaced amid rising oil prices.
Earnings And IPO Activity In Focus
On the domestic front, several companies are set to announce their fourth-quarter results on Monday, including Bank of Maharashtra, PNB Housing Finance, SML Mahindra and Ugro Capital.
Primary market activity also remains active, with Citius Transnet InvIT’s public issue entering its second day of subscription after receiving a modest response on day one. The Mehul Telecom IPO continues to see strong demand, having been subscribed multiple times already.
What To Expect In Indian Markets Today
Markets are likely to open on a mildly positive note, supported by GIFT Nifty trends and selective global strength. However, volatility is expected to remain elevated, with investor sentiment closely tied to developments in US-Iran negotiations and crude oil movements.
Any signs of escalation could weigh on equities, while progress in talks may help stabilise markets and support risk appetite.
