Key facts
- Gift Nifty futures indicate a positive start, trading nearly 200 points higher.
- Oil prices have slumped to two-month lows, with WTI futures down 1.9% and Brent down 1.5%.
- Indian markets experienced profit booking amid geopolitical tensions.
- The Indian rupee fell 60 paise to settle at 95.85 against the US dollar.
- Foreign portfolio investors were net sellers of shares worth Rs 1,987 crore on Thursday.
Gift Nifty futures are signaling a positive start to trading, with futures trading nearly 200 points higher at 23,397. This follows a period of profit booking in Indian benchmark indices due to escalating geopolitical tensions, particularly concerning the Strait of Hormuz.
Earlier reports indicated a negative start and market falls as Iran closed the Strait of Hormuz, causing oil prices to spike and impacting investor sentiment. However, the latest update shows a reversal in the Gift Nifty's signal.
Oil prices have slumped to two-month lows, with U.S. West Texas Intermediate (WTI) crude futures falling 1.9% to $86.08 a barrel, and Brent crude dropping 1.5% to $89.08 per barrel. This decline occurred despite earlier tensions in West Asia.
Volatility was elevated in the Indian markets, with sharp intraday swings. Analysts suggest Nifty is consolidating in the range of 23,000-23,550, expecting this trend to continue until a directional breakout. A level-based trading approach is advised, with support at 23,000–23,100 and resistance at 23,350–23,500.
In terms of institutional activity, foreign portfolio investors net sold shares worth Rs 1,987 crore on Thursday, while domestic institutional investors were net buyers of Rs 4,224 crore. The Indian rupee depreciated by 60 paise to settle at 95.85 against the US dollar, influenced by West Asian tensions, a stronger greenback, and foreign capital outflows.