Indian Equities Set for Firm Opening as Global Markets Rally, Crude Slips Below $80

Indian equities set for firm opening as Wall Street hits record highs, Brent falls below USD 80

Mumbai, August 5

The S&P 500 and Dow returned to record highs on Tuesday with S&P 500 surging 1.79 per cent to close at 7,737 points, marking its first record high in two months. At the same time, Dow gained more than 900 points, or 1.71 per cent settling above 54,000 points for the first time ever.

This rally was supported by strong corporate earnings, a rebound in technology shares and growing hopes of progress toward reopening the Strait of Hormuz lifted investor sentiment. The Dow soared more than 900 points, or 1.71 per cent and closed above 54,000 points for the first time ever.

Likewise, tech-heavy Nasdaq Composite surged 2.59% on Tuesday. Still, the Nasdaq is about 2% away from its record high set in early June as it recovers from a summer slump. The S&P 500 posted its strongest session since April, while the Dow recorded its best day in nearly two months. The Nasdaq also surged, marking its strongest performance since last week. Concerns over AI had unsettled markets earlier this summer, but a strong earnings season, sector rotation and a rebound in technology stocks have helped push the major indexes back toward record levels.

Brent crude was trading at around USD 78.33 per barrel at the time of reporting while crude oil was trading at around USD 74.51 per barrel.

Rajesh Palviya, Head of Research, Axis Direct, noted, "Wall Street witnessed a strong rebound, with the Dow Jones soaring 907.47 points, the S&P 500 advancing 1.79%, and the Nasdaq Composite rallying 2.59%, as easing concerns over the Strait of Hormuz boosted investor confidence and reignited buying in technology stocks."

"A key positive for Indian equities is the sharp correction in Brent crude, which has slipped nearly 6% to around $79 per barrel," he said.

Market and Banking expert Ajay Bagga noted, "The positive global backdrop sets a constructive tone for Indian equities today, with early indications pointing toward a firm opening for benchmark indices."

He further noted, "Domestic market sentiment remains supported by steady foreign portfolio investor (FPI) equity inflows, resilient Q1 corporate earnings, and favorable legislative momentum following the introduction of key statutory amendments aimed at attracting long-term foreign capital. The immediate trading range for the Nifty 50 remains well-defined between support at 24,400-24,300 and overhead resistance near the 25,000 level, with dip-buying continuing to characterize index structure."

— ANI