Fresh geopolitical tensions in West Asia rattled global financial markets after Iran's Revolutionary Guard reportedly attacked three oil and gas tankers over Monday and Tuesday, prompting renewed US air strikes on targets near the Strait of Hormuz. The latest escalation has cast fresh doubt over the ceasefire, pushed crude oil prices sharply higher, strengthened the US dollar and triggered a broad sell-off across Asian markets.
Brent crude briefly climbed above $76 a barrel before easing, while rising US Treasury yields reflected growing concerns that higher energy prices could keep inflation elevated and delay interest rate cuts.
Gift Nifty, which closed at 24,254.50 on Tuesday night, slipped to around 24,243 in early trade, signalling a weak opening for Indian equities.
Gift Nifty closed at 24,254.50 on Tuesday.
It slipped to around 24,243 in early Wednesday trade.
The trend points to a lower opening for the Indian market.
India's southwest monsoon deficit has eased considerably.
Key highlights:
Rainfall was 17 percent below normal as of July 7, compared with a 40 percent deficit about ten days earlier.
July rainfall is expected to reach around 94 percent of the long-period average.
Kharif sowing, however, remained weak, running 20.77 percent below last year's level as of July 5.
US markets closed in negative territory amid renewed selling in semiconductor stocks and a spike in crude oil prices.
Dow Jones fell 130.76 points (0.25 percent) to 52,925.15.
S&P 500 lost 33.58 points (0.45 percent) to 7,503.85.
Nasdaq Composite declined 302.47 points (1.16 percent) to 25,818.69.
Early Wednesday trading showed mixed signals.
Dow futures slipped 0.03 percent.
S&P 500 futures gained 0.11 percent.
Nasdaq futures advanced 0.46 percent.
Indian ADRs traded mixed after regular market hours.
HDFC Bank closed at $27.12.
ICICI Bank ended at $29.58.
Infosys settled at $11.20 after giving up part of its gains.
Wipro finished unchanged at $1.85.
Most European markets ended in the red.
Germany's benchmark index fell 1.37 percent.
The UK's FTSE closed marginally higher.
Asian equities remained weak on Wednesday morning.
South Korea's Kospi fell around 0.70 percent.
Japan's Nikkei lost nearly 1 percent before trimming losses.
Australia's benchmark index declined 1.35 percent.
Hong Kong's Hang Seng gained 0.20 percent.
Shanghai Composite slipped 0.15 percent.
Indian equities erased early gains after heavy selling in the final half-hour.
The Sensex climbed to 78,664.92 and the Nifty touched 24,530.90 before reversing lower.
Sectoral highlights:
Gainers: Information technology and consumer durables.
Losers: Realty, metals, defence, capital market, pharma and healthcare.
Institutional activity:
Foreign institutional investors bought equities worth Rs 393.19 crore.
Domestic institutional investors sold shares worth Rs 383.43 crore.
Market breadth remained negative.
BSE: 1,534 stocks advanced, 2,700 declined.
NSE: 1,176 stocks advanced, 2,069 declined.
Rashtriya Chemicals and Fertilizers plans to raise around Rs 1,500 crore through a share sale.
Cochin Shipyard's offer for sale received strong institutional demand, with subscriptions reaching 3.52 times. The retail portion opens on Wednesday.
Uno Minda plans to invest Rs 320 crore to enter the automotive seating business.
Dilip Buildcon said the Wayanad landslide was caused by exceptionally heavy rainfall and not by construction-related issues.
Gold prices came under pressure as the stronger US dollar, rising crude oil prices and higher bond yields reduced safe-haven demand.
Key developments:
Spot gold fell $59.20 (1.42 percent) to $4,106.80 an ounce.
Prices briefly slipped below $4,100 in early trade.
In Kerala, 22-carat gold declined by Rs 1,000 per sovereign to Rs 1,06,520.
Silver edged up to around $60.14 an ounce.
Copper edged higher to $13,308.15 a tonne.
Aluminium gained 1.17 percent.
Tin and nickel advanced.
Zinc and lead weakened.
Natural rubber prices continued to rise.
RSS-1 in Bangkok climbed to $296.20 per quintal.
RSS-3 rose to $292.80.
Kerala RSS-4 rubber increased to Rs 27,200 per quintal.
Cocoa gained 1.46 percent to $5,777.19 per tonne, its highest level since January.
Arabica coffee plunged 9.35 percent to $3.17 per pound despite tight global inventories.
The US dollar strengthened as investors sought safety.
Dollar index rose above 101.
Euro weakened to $1.1401.
Pound slipped to $1.3343.
US 10-year Treasury yield climbed to 4.559 percent.
The rupee appreciated by 43 paise to close at 94.97 against the US dollar.
Offshore NDF trading later indicated the dollar near 95.18.
Crude prices surged after tanker attacks near the Strait of Hormuz and renewed US strikes on Iranian targets.
Brent crude rose above $76 before easing.
WTI climbed to around $71.86 a barrel.
Risk aversion hit digital assets.
Bitcoin slipped below $63,700.
Ether traded near $1,780.
Solana hovered around $80.
Sensex 78,180.72 -0.13%
Nifty 50: 24,398.70 -0.13%
Bank Nifty 58,200.70 -0.16%
Mid cap 100 62,285.30 -0.30%
Small cap 100 19,213.40 -0.55%
Dow Jones 52,925.15 -0.25%
S&P 500 7,503.85 -0.45%
Nasdaq 25,818.69 -1.16%
US dollar ₹94.97 -₹0.43
Gold (ounce) $4,106.80 -$59.20
Gold (sovereign, Kerala) ₹1,06,520 -₹1,000
Brent crude $74.16 +$2.17
