Gift Nifty Signals Cautious Start As Oil Crosses $90; Global Cues, Q1 Results In Focus

Gift Nifty was trading around 24,293, a discount of nearly 29 points to the previous close of Nifty futures, indicating a weak opening for the Indian stock market on Monday.

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Gift Nifty Points To Weak Opening

The Gift Nifty indicated a subdued start for domestic equities after global markets came under pressure from rising geopolitical tensions and a sell-off in technology and semiconductor stocks. The Nifty 50 had ended Friday’s session 261.55 points, or 1.09%, higher at 24,334.30, while the Sensex gained 964.58 points, or 1.25%, to close at 78,151.45.

The gap between the Gift Nifty level and the previous Nifty futures close suggested that the strong rally seen in the domestic market on Friday could face pressure at the start of Monday’s session.

Asian Markets Trade Lower

Asian equities remained under pressure amid renewed concerns over the widening U.S.-Iran conflict. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.3%. South Korea’s Kospi fell 1.43%, while the Kosdaq dropped 3.77%. Japanese markets were closed for a holiday.

The weakness in Asian markets followed a decline on Wall Street, where semiconductor stocks led losses. The Dow Jones Industrial Average fell 0.77% on Friday, while the S&P 500 declined 1.01% and the Nasdaq Composite dropped 1.40%.

Crude Oil Price Rises Above $90

Crude oil prices climbed after renewed attacks involving the U.S. and Iran increased concerns over supply disruptions. Brent crude futures rose 2.71% to $90.49 a barrel, extending a 15.9% gain recorded last week. West Texas Intermediate crude was quoted at $84.42 per barrel, up 2.34%.

The sharp rise in crude oil price remains a key factor for Indian markets because higher energy costs can influence inflation, the trade deficit and corporate input expenses. Gold price also declined, with spot gold falling 0.4% to $4,000.55 an ounce, while spot silver price rose 0.9% to $56.42 an ounce.

Q1 Results Remain In Focus

Reliance Industries reported June-quarter revenue from operations of ₹3,11,850 crore, up 4.4% sequentially, while net profit increased 23.4% quarter-on-quarter to ₹20,946 crore. EBITDA rose 10% year-on-year to ₹54,067 crore.

HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank, Punjab National Bank, IDBI Bank, RBL Bank and Punjab & Sind Bank also announced their June-quarter results over the weekend.

Investors will track the impact of global risk sentiment, movements in crude oil price and the next batch of corporate earnings as domestic markets begin the week.