Indian markets open cautiously in green amid oil price rise, escalation of supply disruptions risk from Iran
New Delhi, July 15
Despite Brent crude trading at over $85 per barrel, Indian markets breathed in green on Wednesday morning as equity indices opened with marginal gains, tracking mixed global indicators and escalating tensions in West Asia.
The BSE SENSEX stood at 77,204.25 points, marking an increase of 149.31 points or 0.19 per cent. At the same time, the NSE NIFTY 50 stood at 24,077.65 points, up by 25.60 points or 0.11 per cent.
Banking and market expert Ajay Bagga highlighted that a military escalation in the Middle East altered the market dynamics on Wednesday morning, putting pressure on Indian equities.
"Indian markets are subdued due to the oil price rise and risk from an escalation of supply disruptions from Iran," Bagga said.
"The futures are pointing to a slight positive move at the open, but resumed FPI selling and the Gulf disruption risk will keep up moves limited," he added.
The domestic market performance followed a positive session in the West and across most Asian indices. Dow Jones Futures rose by 72.00 points to 52,580.27, while the S&P 500 gained 28.25 points to reach 7,543.59. The Nasdaq also saw an upward movement, gaining 233.83 points to touch 26,107.01.
Analysing the international landscape, Bagga noted that macroeconomic data from the United States provided an initial boost to global equities, which was further influenced by political developments and a resurgence in technology shares.
"US CPI coming below expectations and falling month on month for the first time since 2020 set the backdrop to a rise in US stocks on Tuesday," Bagga said. "Trump walking back on his proposal to levy a 20% Hormuz toll helped the oil markets somewhat. There was a recovery in the AI momentum stocks."
"This morning, the expected resumption of the US maritime blockade of Iranian shipping and ports has been implemented with both US and Iran launching missile and drone attacks on each other," Bagga stated.
Despite the positive domestic start, commodities faced resistance due to emerging geopolitical conflicts impacting the energy sector. At the time of reporting, Brent Crude rose by USD 1.16 to USD 85.89, while Crude Oil increased by USD 0.82 to USD 80.16. On the other hand, Gold fell by USD 25.24 to stand at USD 4,029.06.
"Oil is up again, but Asian markets are up mostly, benefitting from the lower US CPI print and the resumed AI enthusiasm," he said.
In Asia, Japan's Nikkei 225 jumped 702.50 points to 68,446.00, and the Hang Seng index in Hong Kong increased by 364.27 points to 24,705.00. However, China's Shanghai Composite opposed the trend, declining slightly by 3.23 points to 3,963.90.
— ANI
Reader Comments
Finally some green in the market! But I'm more worried about the common man - petrol prices are already sky-high in Mumbai. If crude touches $90, we'll be paying ₹120 per litre soon. The government should think about reducing excise duty to give us some relief. Markets can wait, everyday expenses cannot.
Good to see Nifty holding above 24k despite all the global chaos. The US CPI data is a positive sign - maybe Fed will cut rates sooner. But Ajay Bagga's analysis is spot on about FPI selling and Gulf disruption. I'm holding my positions but not adding any new ones until this Iran situation stabilizes. Better safe than sorry.
Interesting to see India's markets bucking the trend while China's Shanghai Composite is down. Shows the resilience of Indian economy despite external shocks. But oil at $85.89 and rising is a major concern for import-dependent nations like India. The US-Iran missile exchanges mentioned in the article could escalate quickly. Let's hope diplomacy prevails.
As someone who just started investing in mutual funds, this news makes me nervous 😅 But I guess volatility is part of the game. The article mentions Trump walking back on Hormuz toll - which is a relief. Our GDP growth is strong at 7.2%, so maybe this is just a temporary blip. Need to stay invested for the long term.
One thing I don't understand - gold fell by $25 when tensions are escalating? That seems odd. Usually gold goes up during geopolitical crises. Maybe investors are moving to risk assets because
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