Fears of a fresh conflict in West Asia are growing, especially around Iran. This has pushed crude oil prices higher and triggered a sharp rally in gold. Global markets are turning cautious as geopolitical risks rise.
Crude oil is moving close to $69 a barrel
Gold has surged past $5,500 an ounce
Investor anxiety is increasing across markets
Indian markets are unlikely to see an upbeat opening today.
Key reasons include:
Expiry of Sensex futures contracts
Weak US futures
Further weakness in the rupee
The Centre will also table the Economic Survey in Parliament today, which could influence market sentiment.
Gift Nifty closed at 25,397.50 overnight
Slipped below 25,360 in early morning trade
This indicates a weak opening for Nifty
The US Federal Reserve kept interest rates unchanged, in line with market expectations.
The Fed said the US economy remains strong
Chair Jerome Powell indicated that rate cuts are unlikely before May
This reduced global risk appetite
US futures were trading lower this morning.
Dow Jones down 0.30 percent
S&P 500 down 0.22 percent
Nasdaq down 0.15 percent
Meta Platforms jumped nearly 10 percent after strong quarterly results
Microsoft fell 7 percent due to weakness in its cloud business and a cautious outlook
Tesla rose 1 percent despite lower sales, as results beat expectations
IBM surged 8 percent on better-than-expected earnings
Apple results are expected after market hours today
US markets ended mixed on Wednesday, showing no clear direction.
Asian markets opened on a weak note.
Japan’s Nikkei fell 0.25 percent
Australian markets declined 0.70 percent
South Korean stocks moved to fresh record highs
Hong Kong and Shanghai indices opened about 0.25 percent lower
Indian equities rose sharply on Wednesday, driven by optimism over the India–EU trade deal and expectations of growth in public sector companies.
However, the indices ended well below their intraday highs.
Defence stocks were the top performers amid expectations of higher budget allocation.
Major gainers included:
BEML
Mishra Dhatu Nigam
Bharat Electronics
Bharat Dynamics
Some stocks gained as much as 12 percent during the session.
Shipbuilding companies also posted strong gains.
Cochin Shipyard, Mazagon Dock and Garden Reach Shipbuilders rose between 5 and 8 percent
Cochin Shipyard gained despite weaker results, on hopes of fresh Navy orders
HAL, Zen Technologies, Paras, MTAR and Solar Industries also recorded solid gains
Rising crude oil prices lifted oil stocks.
Oil India rose 9.8 percent
ONGC gained 8.18 percent
Kitex Garments rose 5.61 percent after its promoter group’s party joined the BJP-led alliance
CSB Bank fell sharply, dropping up to 18 percent after weak quarterly results and deterioration in asset quality
Kalyan Jewellers ended marginally lower after a recent recovery
Sensex closed at 82,344.68, up 0.60 percent
Nifty 50 ended at 25,342.75, up 0.66 percent
Bank Nifty rose 0.66 percent to 59,598.80
Mid-cap 100 gained 1.66 percent
Small-cap 100 jumped 2.26 percent
Market breadth remained positive, with advancing stocks outnumbering decliners on both NSE and BSE.
Foreign investors turned net buyers after several weeks, while domestic institutions continued strong buying.
Gold prices recorded a sharp rally over the past 24 hours.
Gold crossed $5,500 an ounce
Touched $5,585 in Asian trade before easing slightly
Prices have risen over 114 percent in the past 13 months, the sharpest rise since 1979
Weakness in the dollar
Rising geopolitical risks linked to Iran
Expectations that countries may reduce reliance on dollar assets
Experts warn that speculation is high and investors should proceed with caution.
Silver climbed to $119.50 an ounce globally
Platinum traded at $2,720
Palladium at $2,030
Rhodium at $10,600
Industrial metals moved in mixed directions, while agricultural commodities showed uneven trends.
The dollar remained weak globally, with the dollar index around 96.34.
Euro eased slightly to $1.198
Pound strengthened to $1.3834
Japanese yen traded near 152.80 per dollar
The rupee closed at ₹91.78 against the dollar
Overseas markets suggest further pressure, with the dollar touching ₹92.04
The Chinese yuan strengthened against the rupee
Rising tensions near Iran pushed crude oil prices higher.
US aircraft carriers moved closer to Iran
Strong warnings were exchanged between the US, Iran and Israel
Prices:
Brent crude closed at $68.74 a barrel
WTI crude traded at $63.71
Natural gas rose to $7.46
Crypto markets remained weak.
Bitcoin traded near $88,900
Ether fell below $3,000
Solana slipped below $125
(As on January 28, Wednesday)
Sensex: 82,344.68, up 0.60 percent
Nifty 50: 25,342.75, up 0.66 percent
Dollar: ₹91.78
Gold (ounce): $5,416
Gold (sovereign): ₹1,22,520
Brent crude: $68.74