- Indian indices opened cautiously Wednesday, after previous session’s decline.
- Global tech sell-off and US-Iran talks influence sentiment.
- Oil prices declined; monsoon progress, Fed stance are key.
Indian benchmark indices opened on a cautious note on Wednesday, with the BSE Sensex at 76,145, down 54 points, while the NSE Nifty 50 stood at 23,798, losing 25 points at 9:15 AM.
The domestic market opened after a sharp decline in the previous session, when the Sensex tumbled 893.39 points, or 1.16 per cent, to close at 76,200.68, while the Nifty fell 278.80 points, or 1.16 per cent, to settle at 23,824.10.
Investor sentiment continues to be influenced by global market movements, uncertainty over the US-Iran peace process and persistent selling pressure in technology stocks.
GIFT Nifty Points To Positive Start
GIFT Nifty was trading at 23,865 around 7:45 AM, up 55 points, or 0.23 per cent, indicating a positive start for domestic equities after Tuesday’s sharp sell-off.
The indication came after Indian benchmarks recorded their steepest decline in nearly two weeks, with investors trimming exposure to technology shares amid weak global cues and uncertainty surrounding US-Iran peace negotiations.
Pre-open Session Reflects Divergent Trends
During the pre-open session at around 9:02 AM, the Sensex was trading at 77,176.11, up 975.43 points, or 1.28 per cent.
The Nifty, however, was at 23,668.80, down 155.30 points, or 0.65 per cent, during the pre-open trade window.
The divergent moves in the pre-open session reflected mixed sentiment as investors weighed domestic and global developments ahead of regular trading.
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Asian Markets Trade Mixed After Tech Sell-Off
Asian markets traded on a mixed note in early trade on Wednesday.
Japan’s Nikkei 225 declined 0.54 per cent, while Hong Kong’s Hang Seng advanced 0.55 per cent.
South Korea’s Kospi rebounded after the recent global technology-led sell-off, with heavyweight semiconductor shares supporting gains. The index was up 2.77 per cent.
Asian stocks remained volatile a day after a broad global sell-off in technology and semiconductor shares, with analysts warning of the possibility of renewed market swings.
Wall Street Slides On Technology Weakness
US equities ended lower overnight as technology stocks came under fresh pressure.
The Dow Jones Industrial Average slipped 0.09 per cent, while the S&P 500 fell 1.44 per cent to a more than one-week low. The Nasdaq Composite tumbled 2.21 per cent.
Risk-off sentiment spread across Wall Street amid concerns over rising debt-funded artificial intelligence spending and speculation that the US Federal Reserve could adopt a more hawkish stance.
Treasury yields declined as investors shifted towards government debt, while another round of selling in technology and semiconductor stocks weighed heavily on market sentiment.
US-Iran Talks And Monsoon Trends In Focus
Progress in the US-Iran peace negotiations has helped ease concerns over potential disruptions to global energy supplies.
However, uncertainty remains over the durability of the agreement, with the United States and Iran offering differing accounts on key aspects of the proposed deal, including nuclear inspections and control of the Strait of Hormuz.
Investors are also monitoring monsoon progress closely. Rainfall deficiencies in several regions have raised concerns over agricultural output, food inflation and rural demand, making weather developments an important factor for markets in the coming weeks.
While improving sentiment from the peace negotiations has provided some support, weakness in global technology stocks and concerns over a more hawkish US Federal Reserve continue to keep investors cautious.
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Commodities Under Pressure As Oil Declines
Brent crude prices extended their decline on Wednesday as traders anticipated uninterrupted supply flows through the Strait of Hormuz.
Oil prices remained near four-month lows after signs emerged that more oil tankers stranded in the Gulf since the start of the Iran conflict could resume movement through the strategic waterway.
The June Brent crude futures contract traded at $76.85 per barrel on the Intercontinental Exchange, down 0.3 per cent.
Gold futures were trading 1.09 per cent lower, while silver futures declined 0.6 per cent.
Market participants will continue to monitor developments surrounding the US-Iran peace negotiations, movements in global technology stocks and signals from overseas markets during the session. Traders are also keeping a close watch on monsoon progress, commodity prices, and broader global risk sentiment as domestic equities navigate mixed international cues.
