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Indian equities set for gap up as Gift Nifty jumps, Asian markets rally on Iran US talks progress, crude falls below 100, but India fuel prices hiked again, pressuring forex
Sensex, Nifty Eye Strong Opening As Brent Crude Falls, Asian Markets Rally
Stock Market: The Indian equity market is set to start the week on a big gap-up, with Gift Nifty surging above 270 points or 1.15 per cent in the morning session. Benchmark indices seem to continue the positive momentum this week, too, following the positive developments and rising hopes of a breakthrough in the Iran-US war negotiations.
Crude oil prices fell sharply on Monday as the US and Iran moved closer to a deal that would reopen the Strait of Hormuz.
Brent crude oil prices came below $100 per barrel after hovering above for an extended period, while WTI crude dropped 4 per cent to trade around $92 per barrel.
Indian markets are expected to begin the new week with a cautiously optimistic undertone, supported by a sharp correction in crude oil prices and improving sentiment surrounding the ongoing U.S.–Iran negotiations, although investors continue to remain mindful of lingering geopolitical risks, according to by Ponmudi R, CEO of Enrich Money.
Asian Markets Surge
Cheering the positive development on the Iran-US war front, Asian markets also surged, with Japan’s Nikkei 225 rising by 3 per cent or 1,975 points to 65,314.
South Korea’s Kospi also gained 0.41 per cent to 7,847 in the morning session.
Gold, Silver Prices Jump
Gold and silver spot prices at the international market also surged up to 3 per cent, with gold trading around $4,562 per ounce, while silver at $77 per ounce.
Petrol, Diesel Prices Hiked For Fourth Time
Oil Marketing Companies (OMCs) have hiked the prices of petrol and diesel across India, the fourth retail fuel rate increase in 10 days amid the elevated crude oil prices. Petrol and diesel prices were raised on Monday by Rs 2 per litre.
With the latest revision, cumulative increases in petrol and diesel prices have now touched nearly Rs 7.5 per litre since fuel price revisions resumed on May 15 after a prolonged freeze.
Elevated crude oil prices triggered by the Iran-US war are putting pressure on OMCs, leading to sharp losses every day. India imports 85-90 per cent of its crude oil, making it volatile for geopolitical disruption.
India’s forex reserve is under pressure due to the elevated crude oil prices.
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