Gift Nifty Signals Flat Start; Crude Oil Prices, Gold Rate And Global Cues In Focus

The stock Nifty signalled a low-profile start for India’s stocks market on Monday, with investors reacting to the mixed bag of global cues and fresh domestic cues for the new week. While Asian markets showed a mixed trend, easing crude oil prices and steady global risk sentiment remained among the key factors likely to influence trading.

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Gift Nifty Indicates Muted Opening

Gift Nifty was trading around the 24,346 mark, about 6 points below the previous close of Nifty futures, indicating a largely flat start for the benchmark indices. The derivatives indicator remained the primary overnight signal for domestic investors after Indian markets ended last week on a positive note.

On Friday, the Sensex advanced 261.79 points, or 0.34%, to settle at 77,763.91, while the Nifty 50 gained 95.15 points, or 0.39%, to close at 24,270.85. With Gift Nifty showing only a marginal discount, market participants will look for fresh triggers during the session.

Asian Markets Trade Mixed

Asian equities began the week on a mixed note. MSCI’s Asia-Pacific index excluding Japan rose 0.4%. Japan’s Nikkei 225 traded largely unchanged, while the Topix gained 0.6%. South Korea’s Kospi advanced 1.94%, although the Kosdaq declined 2.31%. Hong Kong futures pointed to a softer opening.

U.S. stock futures moved higher after Wall Street remained shut on Friday for the U.S. Independence Day holiday. S&P 500 futures gained 0.5%, while Nasdaq futures rose 1.4%.

OPEC Decision Weighs On Crude Oil Prices

Crude oil prices remained under pressure after OPEC agreed to raise production targets further from August. According to the group’s statement, member countries approved an increase of 188,000 barrels per day, following similar output hikes announced for June and July.

Brent crude oil price slipped 0.33% to $71.88 per barrel, while U.S. West Texas Intermediate crude oil price declined 0.16% to $68.58 per barrel. Lower oil prices remain significant for India, which imports the majority of its crude requirements.

Gold Rate Holds Near Two-Week High

The gold price remained close to a two-week high after softer U.S. economic data moderated expectations of further policy tightening. Spot gold price was steady at $4,175.02 per ounce, while U.S. gold futures for August delivery rose 1.5% to $4,186.80 per ounce. Spot silver price edged up 0.1% to $62.47 per ounce.

Meanwhile, the U.S. dollar index remained near a two-week low at 100.9, providing additional support to bullion.

Bank Updates Add Domestic Focus

Apart from Gift Nifty, investors will also monitor quarterly business updates released by several banks. HDFC Bank reported 15.4% year-on-year growth in gross advances and a 14.7% rise in deposits. Axis Bank posted 18.8% growth in advances and an 18.2% increase in deposits, while Kotak Mahindra Bank reported 15.1% growth in net advances. IndusInd Bank said its advances declined 2.3% year-on-year, although deposits increased 4.5%.

With Gift Nifty signalling a flat opening and overseas cues remaining mixed, investors are expected to track global commodity prices, banking updates and upcoming corporate earnings for further direction during the trading session.