Indian benchmark indices Sensex and Nifty are likely to open sharply lower on Wednesday tracking a loss of over 150 points in GIFT Nifty. Renewed geopolitical tensions in the Middle East weighed on global risk sentiment, pushing crude oil prices higher and prompting weakness across global equity markets.
GIFT Nifty was trading at 24,225 around 8:10 am, down 158.5 points or 0.65 percent, indicating a gap-down opening for the Nifty 50 after it closed at 24,398.7 on Tuesday. The negative indication follows a volatile session in the domestic market, where benchmark indices snapped a four-session winning streak. The Sensex fell 104.35 points, or 0.13 percent, to close at 78,180.72, while the Nifty declined 31.65 points, or 0.13 percent.
Geopolitical tensions, oil surge weigh on global sentiment
Global sentiment turned cautious after the United States launched airstrikes against Iran following attacks on commercial vessels transiting the Strait of Hormuz, rekindling concerns over stability in the Middle East and the security of global energy supplies.
The escalation triggered a sharp rally in crude oil prices. Brent crude futures rose nearly 2 percent to around $75.5 a barrel, while US West Texas Intermediate crude climbed close to $71.8 a barrel, extending gains after Washington revoked the licence permitting Iranian crude sales.
Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today
Wall Street declines as AI rally loses momentum, Asian markets mixed
Overnight, US markets ended lower as semiconductor stocks came under renewed pressure amid growing doubts over the sustainability of the artificial intelligence-driven rally. The Nasdaq Composite fell 1.16 percent, while the S&P 500 declined 0.45 percent. The Dow Jones Industrial Average slipped 0.25 percent after briefly touching a record high during the session.
Chipmakers including Micron Technology weakened after Samsung Electronics’ stronger-than-expected earnings failed to meet elevated investor expectations, leading to fresh selling across the semiconductor sector.
Asian markets were mixed in early trade on Wednesday as investors assessed the geopolitical developments alongside higher oil prices. Japan’s Topix fell 0.7 percent and Australia’s S&P/ASX 200 declined 1.2 percent, while Hong Kong’s Hang Seng rose 1.5 percent and Shanghai equities edged higher. MSCI’s broadest index of Asia-Pacific shares slipped about 0.2 percent.
US futures were relatively stable, with S&P 500 futures little changed and Nasdaq 100 futures edging 0.3 percent higher after Tuesday’s decline.
Foreign institutional investors (FIIs) remained net buyers for a third consecutive session on July 7, purchasing Indian equities worth Rs 393 crore, suggesting overseas sentiment towards domestic markets had continued to improve before the latest geopolitical flare-up. However, domestic institutional investors (DIIs) turned net sellers, offloading equities worth Rs 383 crore.
Expert view: Markets may remain cautious amid geopolitical risks
Ponmudi R, CEO of Enrich Money, said the renewed escalation has revived concerns over regional stability and global energy supplies, which could trigger risk aversion and profit booking after the recent rally. He added that investors would closely monitor whether recent FII buying continues, as sustained foreign inflows will be important for helping domestic markets withstand global headwinds.
According to Ponmudi, the Nifty continues to maintain a constructive technical structure despite recent profit booking. The immediate resistance is placed around 24,500, and a sustained move above this level could open the way towards 24,800. On the downside, 24,300 is expected to provide immediate support, followed by the important 24,200 zone. A break below this level could accelerate selling and drag the index towards the 24,000 mark.
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