West Asian peace talks have stalled, and tensions escalated after Donald Trump said sanctions on Iran would continue until it agrees to negotiations. Oil prices surged past $120 a barrel, raising fears of a sharp slowdown in global growth, including India. Analysts warn that persistently high crude prices could weigh heavily on economic expansion and push the rupee lower, with the $/₹ rate nearing 95.
Asian markets opened mostly lower. Factory output growth in China slowed, adding to concerns over demand.
In GIFT City derivatives trade, Gift Nifty closed at 24,119.50 on Wednesday night and rose to 24,199 in early trade, indicating a weak start for Indian markets.
US markets saw choppy trade amid rising oil prices and fading hopes of a near-term Iran deal. Investors appear to be betting that tensions may ease eventually.
The Federal Reserve kept interest rates unchanged at its latest meeting, the last chaired by Jerome Powell before his term ends next month. He indicated he would continue as a member.
Dow Jones fell 280.12 points (0.57%) to 48,861.81
S&P 500 slipped 2.85 points (0.04%) to 7,135.95
Nasdaq edged up 9.44 points (0.04%) to 24,673.24
US futures were mixed this morning, with tech stocks gaining.
Dow futures down 169 points (0.34%)
S&P 500 up 0.42%
Nasdaq up 0.89%
Among major stocks:
Meta Platforms fell around 7% in futures after weak results
Microsoft was largely unchanged
Alphabet jumped about 7% on strong earnings and cloud growth
Amazon gained around 3%
Indian ADRs in New York were mixed in after-hours trade:
HDFC Bank down marginally to $25.25
ICICI Bank slightly lower at $26.53
Infosys rose to $12.52
Wipro edged up to $2.04
European markets declined again amid geopolitical uncertainty. Adidas surged 8.9% after strong business growth.
In Asia:
Japan’s Nikkei fell 1.2%
South Korea’s Kospi rose 0.40%
Australia slipped 0.25%
Despite rising crude prices, Indian equities advanced on Wednesday but retreated from intraday highs due to profit booking.
Sensex climbed 609.45 points (0.79%) to 77,496.36
Nifty rose 181.95 points (0.76%) to 24,177.65
Bank Nifty was flat at 55,403.60
Mid caps slipped while small caps gained. Broader market breadth remained weak.
Foreign investors continued selling, offloading ₹2,468.42 crore, while domestic investors bought ₹2,262.17 crore.
Adani Power Q4 net profit rose 52% to ₹4,017 crore
Bajaj Finance reported strong growth in net interest income and profit
Federal Bank saw robust earnings but shares fell after hitting record highs
Dhanlaxmi Bank posted strong profit growth
Gold fell amid volatility despite geopolitical tensions. It closed at $4,544.90 per ounce and recovered slightly this morning.
In Kerala, 22-carat gold fell ₹360 to ₹1,10,320 per sovereign.
Industrial metals showed mixed trends:
Copper rose 0.79%
Aluminium dipped 0.10%
Nickel, tin and lead gained; zinc declined
Rubber prices rose in Bangkok
Cocoa gained; tea remained flat
Coffee and palm oil edged higher
Fertiliser prices showed mixed movement
The dollar index climbed to 98.96 before easing slightly.
Euro fell to $1.1687
Pound slipped to $1.3493
Yen weakened to 160.11 per dollar
US 10-year bond yields jumped to 4.426%.
The rupee weakened further, closing at 94.85 against the dollar, down 31 paise. Rising crude prices and continued foreign outflows are weighing on the currency.
In the NDF market, the rupee moved closer to 95, raising concerns of further depreciation.
Crude prices spiked after renewed geopolitical tensions:
Brent rose 7% to $118.03 and moved near $120
WTI jumped 8% to $107.47
UAE’s Murban crude closed at $113.47
India’s crude basket rose to $112.83
Cryptocurrencies slipped again:
Bitcoin fell below $76,000
Ether dropped under $2,270
Solana traded below $84
Sensex: 77,496.36 (+0.79%)
Nifty 50: 24,177.65 (+0.76%)
Bank Nifty: 55,403.60 (+0.01%)
Mid cap 100: 60,376.90 (-0.07%)
Small cap 100: 18,093.15 (+0.65%)
Dow Jones: 48,861.81 (-0.57%)
S&P 500: 7,135.95 (-0.04%)
Nasdaq: 24,673.24 (+0.04%)
Dollar: ₹94.85 (+₹0.31)
Gold (ounce): $4,544.90 (-$52)
Gold (sovereign): ₹1,10,320 (-₹360)
Brent crude: $118.03 (+$6.77)
