Progress in the West Asia peace negotiations in Switzerland has lifted investor sentiment across Asian markets. Crude oil prices have fallen back below $80 a barrel, while gold has rebounded above $4,200 an ounce amid cautious optimism over a potential diplomatic breakthrough.
Negotiators meeting in Lucerne, Switzerland, reportedly agreed on a framework for further discussions and set up a supervisory committee to oversee the peace process. A separate consultation panel has also been formed to address issues related to Lebanon. The developments have eased immediate concerns over supply disruptions and geopolitical risks.
Gift Nifty, which closed at 24,090 on Friday night, climbed to 24,183 in early trade on Monday, indicating a positive opening for Indian equities.
While global cues have improved, domestic concerns remain. The India Meteorological Department said southwest monsoon rainfall was 42 percent below normal as of June 21. Nearly 69 percent of the country has recorded rainfall deficits exceeding 20 percent.
If the trend continues, the shortfall could cross 50 percent by the end of the week. Key agricultural regions have received 27-84 percent less rainfall than usual. Meteorologists attribute the weak monsoon to the El Niño phenomenon. A prolonged deficit could affect farm output, rural demand and ultimately economic growth.
Reliance Industries' telecom and digital arm Jio Platforms has reportedly filed a draft prospectus with SEBI for its proposed initial public offering.
The company aims to raise about ₹37,700 crore and is seeking a valuation of around ₹14 lakh-crore. If achieved, Jio would become one of India's most valuable listed companies, second only to Reliance Industries. HDFC Bank's market capitalisation stands at around ₹12 lakh-crore, while Bharti Airtel is valued at about ₹11.6 lakh-crore.
The National Stock Exchange is also progressing with IPO plans and is reportedly targeting a ₹30,000 crore fund raise.
The Jio listing could help Reliance reduce debt and support its ambitious investments in artificial intelligence infrastructure announced at its last annual general meeting.
US markets were closed on Friday for a holiday. On Thursday, Wall Street indices ended higher.
US futures were trading lower on Monday morning, with Dow futures down 57 points, S&P 500 futures down 16 points and Nasdaq futures lower by 67 points.
European markets ended lower on Friday amid uncertainty surrounding the Switzerland talks.
Asian markets, however, were mostly positive. Japan's Nikkei surged 1.9 percent to a record high of 72,584. South Korea's Kospi rose 1.2 percent, while Australia's benchmark index gained 0.2 percent. Shanghai advanced 0.1 percent, though Hong Kong slipped 0.5 percent.
Indian equities ended lower on Friday, weighed down by geopolitical uncertainty, rising oil prices, weak monsoon conditions and a sharp sell-off in IT stocks.
The IT sector came under pressure after Accenture cut its revenue outlook. The Nifty IT index fell as much as 6 percent during the session before closing 3.65 percent lower.
Oil & gas, banking, financial services, automobile and realty stocks also declined, while healthcare and pharmaceutical shares outperformed.
Foreign portfolio investors turned buyers, recording net purchases of ₹4,859 crore. Domestic institutional investors were net sellers to the tune of ₹1,160 crore.
The Sensex fell 607 points, or 0.78 percent, to close at 76,802.90. The Nifty 50 declined 154.90 points, or 0.64 percent, to 24,013.10. Bank Nifty lost 0.48 percent to end at 57,685.75.
Broader markets outperformed. The Nifty Midcap 100 rose 0.22 percent and the Smallcap 100 gained 0.42 percent.
Federal Bank touched a record high of ₹324.90 before closing 1.11 percent higher at ₹324.
Gold fell 1.3 percent on Friday to close at $4,156.70 an ounce amid speculation that peace talks might be delayed and concerns over higher inflation due to rising oil prices.
However, reports of progress in the negotiations pushed the precious metal back above $4,200. Gold touched $4,220 an ounce in early trade before easing slightly.
In Kerala, the price of 22-carat gold fell sharply to ₹1,07,120 per sovereign on Saturday, though prices may firm up again if international trends persist.
Silver rebounded more than 3 percent to $66.92 an ounce. Platinum traded around $1,690, palladium at $1,260 and rhodium at $7,700.
Industrial metals remained under pressure on concerns that higher interest rates could weaken demand. Copper slipped 0.6 percent to $13,530 a tonne, while aluminium eased 0.15 percent.
Natural rubber prices continued to soften in international markets. Cocoa traded around $4,254 a tonne, while futures moved above $4,400.
The dollar index strengthened and briefly rose above 101 before easing back. The euro weakened to $1.1466 and the pound slipped to $1.3224. The Japanese yen remained near multi-decade lows.
The Indian rupee ended almost unchanged on Friday at ₹94.32 against the dollar. In the offshore NDF market, the rupee was trading around ₹94.35 on Monday morning.
Brent crude, which settled at $81.27 on Friday, slipped below the $80 mark and traded at $79.41 a barrel. WTI crude fell to $75.72.
Cryptocurrencies recovered over the weekend. Bitcoin climbed above $63,800, while Ether traded above $1,720 and Solana rose past $73.
Sensex: 76,802.90 (-0.78%)
Nifty 50: 24,013.10 (-0.64%)
Bank Nifty: 57,685.75 (-0.48%)
Midcap 100: 62,517.30 (+0.22%)
Smallcap 100: 18,784.50 (+0.42%)
Dow Jones: 51,564.70 (+0.14%)
S&P 500: 7,500.58 (+1.08%)
Nasdaq: 26,517.93 (+1.91%)
Dollar/₹: ₹94.32 (-₹0.01)
Gold (ounce): $4,156.70 (-$53.70)
Gold (sovereign): ₹1,06,960 (+₹320)
Saturday: ₹1,07,120 (+₹160)
Brent crude: $81.20 (+$1.35)
