- Indian equities opened lower, West Asia, Accenture weighed.
- US-Iran peace deal boosted US markets, eased oil.
- Federal Reserve held rates, signaling potential future hikes.
Indian equity benchmarks opened in the red on Friday, with the Sensex trading at 76,700, down 700 points, while the Nifty50 opened below 24,000, lower by 200 points, as of 9:15 AM.
Market sentiment remained cautious as renewed concerns around developments in West Asia and a weak read-through from Accenture’s earnings outlook weighed on investor confidence. On the domestic front, IT stocks are expected to remain under pressure after Accenture issued softer revenue guidance. On Wall Street, the American depository receipts (ADRs) of Infosys and Wipro fell 9.7 per cent and 3.63 per cent, respectively.
GIFT Nifty Signals Negative Start
The GIFT Nifty pointed to a weak opening for domestic equities.
The futures contract was quoted at 24,014, down 179 points, indicating a negative start for the Nifty50.
Pre-open Trade Signals Selling Pressure
In the pre-open session at around 9:02 AM, the Sensex stood at 77,376.31, down 33.67 points, or 0.04 per cent.
The Nifty declined 203.90 points, or 0.84 per cent, to 23,964.10.
Asia Markets Diverge As Oil Flow Hopes Improve Mood
Markets across the Asia-Pacific region traded mixed on Friday.
South Korea’s Kospi surged 3.08 per cent after hitting a fresh high. Japan’s Nikkei 225 advanced 0.33 per cent, while Hong Kong’s Hang Seng slipped 1.59 per cent.
Broader Asian equities moved higher, with investor sentiment supported by optimism that the reopening of the Strait of Hormuz could help restore oil flows and ease inflation pressures.
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Nasdaq Leads US Rally As Risk Appetite Improves
US markets ended higher overnight.
The Dow Jones Industrial Average rose 72.15 points, or 0.14 per cent, to close at 51,564.70. The S&P 500 gained 80.48 points, or 1.08 per cent, to 7,500.58, while the Nasdaq Composite jumped 496.28 points, or 1.91 per cent, to 26,517.93.
Technology and semiconductor stocks led gains, helping lift the Nasdaq. Investor sentiment also improved after the US and Iran signed a peace agreement, although markets continued to factor in the possibility of higher US interest rates later this year.
Peace Deal, Fed Decision Shape Global Sentiment
The US-Iran interim peace agreement came into effect, with shipping activity beginning to return to the Strait of Hormuz after the US declared an end to its blockade. Negotiations over Tehran’s nuclear programme are set to continue.
In the US, the Federal Reserve kept interest rates unchanged at 3.50 per cent-3.75 per cent during the first policy meeting chaired by Warsh. Policymakers, however, indicated that borrowing costs could rise later this year amid concerns that inflation remains above the central bank’s 2 per cent target.
Meanwhile, the Russia-Ukraine conflict remained in focus after Ukraine struck a Moscow oil refinery for the second time in a week and disrupted commercial flights at Moscow airports in one of its largest drone attacks since the invasion began more than four years ago.
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Oil, Precious Metals Extend Losses
Crude oil prices extended losses following the US-Iran peace agreement and the lifting of the Strait of Hormuz blockade. Brent crude futures fell 54 cents, or 0.68 per cent, to $78.31 a barrel. US West Texas Intermediate crude declined 46 cents, or 0.60 per cent, to $76.14 a barrel.
Precious metals also traded lower. Gold futures were down 1.01 per cent, while silver futures fell 1.89 per cent. Gold prices remained under pressure from a stronger US dollar and hawkish signals from the Federal Reserve.
Traders will track the impact of Accenture’s softer revenue outlook on domestic IT stocks, developments surrounding the US-Iran peace agreement and shipping activity through the Strait of Hormuz, as well as signals from the Federal Reserve on the future path of US interest rates. Commodity price movements, particularly crude oil and precious metals, are also likely to remain in focus through the session.
