- Indian equities opened firm, but GIFT Nifty suggested caution.
- Asian markets advanced; crude oil prices declined post-OPEC+ output.
- Hormuz traffic remained steady, easing global crude oil prices.
Indian equity benchmarks started the week on a firm note, even as investors remain cautious ahead of key global events and mixed overseas cues.
The BSE Sensex rang the opening bell near 77,950, soaring close to 200 points, while the NSE Nifty50 opened trading above 24,300, inching up 32 points.
GIFT Nifty Signals A Muted Opening
The GIFT Nifty pointed to a subdued start for domestic equities despite the positive trend in the pre-open session.
The futures contract was trading around 24,326, down 36 points, suggesting investors are adopting a cautious stance ahead of the release of the US Federal Reserve’s June meeting minutes later this week.
The minutes are expected to offer fresh clues on the central bank’s interest rate outlook and could influence global fund flows into emerging markets, including India.
In the pre-open session at around 9:03 AM, the Sensex was trading 406.04 points, or 0.52 per cent, higher at 78,169.95, while the NSE Nifty50 gained 59.50 points, or 0.25 per cent, to 24,330.35.
Despite the positive pre-open indicators, broader market sentiment is likely to remain measured as traders await fresh signals from the US Federal Reserve and monitor developments in global commodity markets.
Asian Markets Trade Higher
Most equity markets across the Asia-Pacific region advanced in early trading on Monday, supported by easing crude oil prices and renewed buying in technology stocks.
South Korea’s Kospi gained around 0.6 per cent, while China’s CSI 300 index also traded in positive territory, reflecting improved investor sentiment across the region.
The upbeat performance followed a relatively stable close on Wall Street and easing concerns over energy prices.
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Oil Prices Extend Decline
Crude oil prices continued to soften after OPEC+ agreed to raise production from August, extending the output increases announced for June and July.
Brent crude futures slipped nearly 0.5 per cent to around $71.78 per barrel, as expectations of higher supply outweighed concerns over geopolitical risks.
Lower crude prices are generally viewed as positive for India, helping ease inflationary pressures, reduce the country’s import bill and improve the outlook for sectors that are heavily dependent on fuel.
Hormuz Traffic Holds Steady Despite Diplomatic Stalemate
While negotiations between the United States and Iran have shown little progress in recent days, shipping activity through the Strait of Hormuz has remained largely uninterrupted.
The continued movement of commercial vessels through one of the world’s busiest energy corridors has helped calm fears of fresh supply disruptions, contributing to the recent decline in crude oil prices.
Markets will continue to monitor geopolitical developments closely, as any deterioration in the situation could quickly alter the outlook for global energy markets.
Precious Metals Rally
Gold and silver prices moved higher in early trade as investors increased allocations to safe-haven assets ahead of key US economic events.
Gold futures climbed more than 2 per cent, while silver futures advanced over 3.5 per cent, reflecting cautious positioning despite the positive trend in equities.
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