- Indian markets opened cautiously optimistic despite global tech sell-off.
- Global markets declined sharply from Wall Street semiconductor sell-off.
- Crude oil prices plummeted to multi-month lows, supporting India.
Indian equity benchmarks witnessed a cautiously optimistic start on Thursday, as weakness across global equity markets offsets support from lower crude oil prices and positive domestic momentum.
The BSE Sensex opened trading above 77,100, climbing more than 200 points, while the NSE benchmark Nifty50 rang the opening bell near 24,100, inching up almost 70 points, as of 9:15 AM.
GIFT Nifty Signals Positive Bias Despite Weak Global Cues
The GIFT Nifty continued to indicate a positive undertone for Indian markets even as global equities came under pressure.
During the pre-open session at around 9:03 AM, the Sensex was down 61.55 points, or 0.08 per cent, at 76,861.09, while the Nifty edged up 5.40 points, or 0.02 per cent, to 24,011.25, indicating a largely flat opening.
Despite the subdued pre-open indicators, the GIFT Nifty was trading around 140 points, or 0.58 per cent, higher, pointing to underlying optimism among traders.
Domestic investors appear to be taking comfort from easing crude oil prices and the resilience shown by Indian benchmarks in recent sessions, although caution is expected to persist amid weakness in overseas markets.
Global Tech Sell-Off Drags Asian Markets Lower
Markets across the Asia-Pacific region traded in the red after a broad sell-off in technology stocks on Wall Street overnight.
South Korea witnessed the sharpest decline, with the Kospi falling more than 5 per cent at the open, prompting the Korea Exchange to briefly suspend programme trading. The Kosdaq also declined sharply, while Japan’s Nikkei 225 traded lower. The broader weakness reflected continued pressure on semiconductor and technology shares globally.
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Wall Street Ends Lower As Chip Stocks Decline
US equities closed lower on Wednesday as investors pared exposure to semiconductor companies.
The Nasdaq Composite recorded the steepest decline among the major indices, while the S&P 500 also ended in negative territory. The Dow Jones Industrial Average slipped marginally.
US index futures traded mixed during Asian hours, suggesting investors remain cautious ahead of fresh economic data and corporate developments.
Crude Oil Falls To Multi-Month Lows
Crude oil prices remained under pressure, providing a supportive macro backdrop for oil-importing economies such as India.
Brent crude traded near $71 per barrel, while WTI crude slipped below $68 per barrel. June also marked the sharpest monthly decline in oil prices since March 2020.
Lower crude prices could help ease inflationary pressures, reduce India’s import bill and support corporate earnings in sectors with high fuel and logistics costs.
Gold Slips; Silver Trades Steady
Precious metals witnessed mixed movement in early trade.
Gold prices edged lower on COMEX, extending the previous session’s decline, while silver traded largely unchanged after falling to its lowest levels of the year in the previous session.
In the domestic market, however, silver prices remained higher, reflecting local demand dynamics.
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Rupee Weakens As Dollar Holds Firm
The Indian rupee weakened against the US dollar in the previous session, closing at 95.24. Meanwhile, the US Dollar Index remained largely steady, reflecting cautious sentiment in global currency markets.
Currency movements are expected to remain in focus alongside commodity prices and overseas developments.
Previous Session: Sensex, Nifty Extend Winning Momentum
Indian markets ended Wednesday’s session on a positive note despite mixed global cues.
The Sensex gained 443.97 points, or 0.58 per cent, to settle at 76,922.64, while the Nifty50 advanced 140 points, or 0.59 per cent, to close at 24,005.85, supported by broad-based buying across select sectors.
Gems and jewellery stocks led the gains, followed by sugar and education shares, while tea and coffee stocks emerged among the biggest losers.
