Negotiations aimed at ending the West Asian conflict appear to have entered a decisive phase, but markets continue to swing sharply with every positive and negative update emerging from the talks. Gulf and Arab nations are reportedly supporting mediation efforts led by Pakistan, and developments from the negotiations are expected to dictate market direction today.
Gift Nifty closed at 23,660.50 in overnight derivatives trading at GIFT City on Thursday. Early Friday, it slipped to 23,613 before recovering to 23,699, indicating a positive opening for Indian equities.
Iran’s nuclear programme and control over the Strait of Hormuz remain the biggest hurdles in the US-Iran negotiations. Iran also claimed it had started collecting tolls through Hormuz and was discussing a toll framework with Oman. Some Iranian media outlets, citing social media channels, even reported that an agreement had already been reached.
Wall Street indices ended modestly higher on Thursday as oil prices fluctuated with developments around the Iran talks. The Dow Jones Industrial Average closed at a record high, while the S&P 500 snapped a three-day losing streak.
Shares of NVIDIA fell 1.8 percent despite strong operational performance, as investors felt results were not strong enough to justify valuations.
The Dow Jones rose 276.31 points, or 0.55 percent, to close at 50,285.66. The S&P 500 gained 12.75 points, or 0.17 percent, to finish at 7,445.72, while the Nasdaq Composite climbed 22.74 points, or 0.09 percent, to 26,293.10.
US futures were trading higher early Friday, with Dow futures up 108 points, S&P futures rising 17 points and Nasdaq futures gaining 68 points.
In New York trading, HDFC Bank ADR ended higher in after-hours trade after an initial decline, while ICICI Bank ADR slipped in extended trading after posting gains earlier.
Infosys ADR declined further after regular trading, while Wipro ADR extended gains in after-hours trade.
Asian equities were broadly higher on Friday. Japan’s Nikkei 225 surged 1.9 percent after retail inflation slowed to its weakest level in four years, potentially complicating efforts by the Bank of Japan to support the yen through rate hikes.
South Korea’s Kospi gained 0.7 percent, while Australia’s benchmark index rose 0.4 percent. Hong Kong’s Hang Seng added 0.65 percent and Shanghai equities were up 0.25 percent.
Indian markets moved opposite to the previous session on Thursday. After opening strongly higher, indices reversed into negative territory as investors reacted to developments in the Iran negotiations and volatile crude oil prices.
Foreign institutional investors continued selling, with net cash market outflows of ₹1,891.21 crore. Domestic institutional investors bought shares worth ₹2,492.42 crore.
IT, FMCG, media, banking and financial stocks declined, while realty, consumer durables, pharma, auto, metals, healthcare, oil and defence shares advanced.
The BSE Sensex fell 135.03 points, or 0.18 percent, to close at 75,183.36. The Nifty 50 slipped 4.30 points, or 0.02 percent, to 23,654.70. Bank Nifty lost 122.80 points, or 0.23 percent, to end at 53,439.40.
Midcap and broader markets outperformed. The Nifty Smallcap 100 index climbed 0.63 percent.
Gold prices continued to fluctuate sharply in line with developments in the Iran negotiations. After falling steeply from intraday highs, gold recovered to close near the previous session’s level. Spot gold closed at $4,544.10 an ounce and slipped to around $4,529 early Friday.
In Kerala, 22-carat gold rose ₹360 per sovereign on Thursday to ₹1,17,280.
Crude oil prices also remained volatile. Brent crude, which had dropped to nearly $102 a barrel before rebounding, closed at $102.58 and climbed above $104 again in early trade Friday. WTI crude recovered to $98.11 a barrel, while Murban crude traded at $102.15.
The Indian rupee recovered on Thursday, supported by lower crude prices and intervention from the Reserve Bank of India. The dollar fell to ₹96.06 before closing at ₹96.20, down 62 paise.
Reports suggest the RBI may consider launching a special foreign currency deposit scheme similar to the 2013 programme to support the rupee, potentially targeting inflows of $35 billion-$50 billion.
Sensex: 75,183.36 (-0.18%)
Nifty 50: 23,654.70 (-0.02%)
Bank Nifty: 53,439.40 (-0.23%)
Nifty Midcap 100: 61,300.60 (-0.04%)
Nifty Smallcap 100: 17,983.05 (+0.63%)
Dow Jones: 50,285.66 (+0.55%)
S&P 500: 7,445.72 (+0.17%)
Nasdaq: 26,293.10 (+0.09%)
Dollar/Rupee: ₹96.20 (-₹0.62)
Gold (ounce): $4,544.10 (-$1.00)
Gold (sovereign): ₹1,17,280 (+₹360)
Brent crude: $102.58 (-$2.44)
