Gift Nifty Signals Cautious Start For Indian Markets As Oil Rises, Asian Stocks Slide

Gift Nifty was trading near 24,106, up around 39 points from the previous close of Nifty futures, indicating a steady-to-positive opening for the Sensex and Nifty 50 on Thursday. The signal comes against a mixed global backdrop, with Wall Street ending higher but Asian markets facing sharp losses amid renewed concerns over the U.S.-Iran conflict and stretched technology valuations.

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The Nifty 50 had closed 26.45 points, or 0.11%, higher at 24,078.50 on Wednesday, while the Sensex gained 130.49 points, or 0.17%, to finish at 77,185.43.

Asian Markets Under Pressure

Asian equities fell sharply in early trading. Japan’s Nikkei 225 dropped 3.03%, while the Topix declined 1.17%. South Korea’s Kospi plunged 6.17% and the Kosdaq fell 4.34%. Hong Kong’s Hang Seng index futures, however, indicated a higher opening.

The weakness followed concerns over valuations in technology stocks and the latest developments in the U.S.-Iran conflict. For Indian investors, the stronger Gift Nifty reading remained the key early indicator ahead of the domestic market open.

Wall Street Ends Higher

U.S. equities closed in positive territory on Wednesday after data showed a decline in producer prices. The Dow Jones Industrial Average rose 150.91 points, or 0.29%, to 52,659.18. The S&P 500 added 28.83 points, or 0.38%, to 7,572.42, while the Nasdaq Composite advanced 162.22 points, or 0.62%, to 26,269.23.

Apple stock price climbed 4.01%, Microsoft shares rose 2.78% and Amazon share price gained 3.02%. Meta shares advanced 3.07%, while PayPal surged 16.87%. In contrast, Micron Technology fell 8.02%, Intel declined 4.43% and AMD slipped 3.46%.

U.S.-Iran Conflict Keeps Oil In Focus

The U.S. carried out two new waves of strikes against Iranian military capabilities linked to threats against shipping through the Strait of Hormuz. Iran’s Revolutionary Guards said the waterway would remain closed until the U.S. ended its military actions and warned that other regional oil export routes could also face risks.

The developments pushed crude oil price higher for a fourth consecutive session. Brent crude futures rose 0.4% to $85.28 a barrel, while WTI crude price increased 0.5% to $80.02 a barrel.

U.S. Producer Prices Fall

The U.S. Producer Price Index for final demand fell 0.3% in June, marking its steepest monthly decline in 14 months. The data followed a downwardly revised 0.6% rise in May and was below the unchanged reading economists had expected, Reuters reported.

South Korea’s central bank also raised its benchmark interest rate by 25 basis points to 2.75%, marking its first rate increase in three and a half years.

Gold price remained broadly stable, with spot gold at $4,056.59 an ounce, while spot silver price declined 0.3% to $57.61 an ounce. Against this backdrop, Gift Nifty’s positive indication will remain the immediate cue for domestic investors, even as crude oil and geopolitical developments continue to shape the broader market tone.