- Indian equities expected strong opening amid positive global cues.
- Asian markets rally; Kospi hits fresh highs; Wall Street advances.
- Crude oil volatile due to Hormuz Strait tensions and US actions.
Indian equity markets are poised for a firm opening on Monday, supported by positive global cues and easing pressure from crude oil prices, even as investors remain alert to key domestic and geopolitical developments.
Early indicators suggest a strong start, with the GIFT Nifty trading at 24,236.50, up 138 points, signalling likely gains in the benchmark Nifty50. The uptick in GIFT Nifty reflects improved risk sentiment, tracking strength across Asian markets and a temporary cooling in oil prices.
Investor confidence has been aided by strong earnings from global technology companies and expectations of stabilising energy markets.
Election Results To Drive Sentiment
On the domestic front, political developments are expected to take centre stage.
Market participants will closely track the outcome of assembly elections in four states and one Union Territory, with results likely to influence near-term sentiment and sectoral moves.
Asian Markets Rally; Kospi Hits Fresh High
Equity markets across Asia-Pacific traded higher in early deals, with South Korea’s Kospi surging sharply and touching fresh highs.
The Kospi advanced over 3 per cent, while Japan’s Nikkei 225 also posted gains. The broader regional momentum reflects optimism driven by strong corporate earnings and easing concerns over energy prices.
Wall Street Gains On Tech Earnings
US markets ended higher on Friday, led by gains in technology stocks.
The S&P 500 and Nasdaq Composite rose 0.29 per cent and 0.89 per cent, respectively, as investors looked beyond elevated inflation readings and ongoing geopolitical tensions, focusing instead on corporate earnings from companies such as Apple and Caterpillar.
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Crude Oil Volatile As Hormuz Crisis Unfold
Crude oil prices remain a key variable for markets.
Brent crude initially dropped sharply by over 2 per cent after the US announced measures to secure shipping routes in the Strait of Hormuz under “Operation Freedom”. However, prices later recovered and were trading marginally higher near $108 per barrel.
The situation in the Strait of Hormuz continues to influence global energy supply expectations and remains a critical factor for market direction.
US-Iran Developments
Geopolitical developments in West Asia continue to shape investor sentiment.
While there are signs of progress, including US efforts to ensure safe passage for vessels, uncertainty persists as both sides review proposals aimed at resolving the conflict. Any disruption in the Strait of Hormuz, a key global energy corridor, could significantly impact oil prices and global inflation.
Gold, Silver Ease
Precious metals traded slightly lower, with gold and silver prices declining as investors shifted towards riskier assets amid improving sentiment in equity markets.
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