Indian shares set for muted start to week as Middle East conflict dents sentiment
India's equity benchmarks are set to open little changed on Monday after two straight sessions of losses, as the conflict between Israel and Iran showed no signs of cooling, denting risk sentiment.
The Gift Nifty futures were trading at 24,791 as of 7:32 a.m. IST, indicating that the Nifty 50 will open near Friday's close of 24,718.6.
Both the benchmarks posted weekly losses on Friday as Israel's military strikes on Iran escalated tensions in the Middle East.
Over the weekend, Israel and Iran launched fresh attacks, killing and wounding civilians and raising concerns of a broader regional conflict.
Other Asian markets opened on a subdued note, with the MSCI Asia ex-Japan index losing 0.2%, while oil prices advanced on supply concerns due to geopolitical tensions in the oil-rich Middle East region.
Financials, IT stocks weigh on Indian equity benchmarks
A rise in oil prices is negative for importers of the commodity such as India, as crude constitutes a significant share of the country's import bill.
Foreign institutional investors (FII) remained net sellers of Indian stocks for a third straight session on Friday, taking their net outflows in June to 54.02 billion rupees ($627.55 million) so far.
Domestic institutional investors (DII) remained net buyers of Indian stocks for the 19th straight session on Friday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
6 hours ago
- Business Recorder
Bullish momentum lifts PSX in early trade
Bullish momentum prevailed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 600 points during the opening hours of trading on Monday. At 9:50am, the benchmark index was hovering at 122,739.07 level, an increase of 595.51 points or 0.49%. Buying interest was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks including HUBCO, MARI, OGDC, PPL, POL, FFC, UBL and MCB traded in the green. During the previous week, the PSX navigated through a volatile week, where a historic market rally driven by budget optimism and monetary easing hopes was swiftly overshadowed by rising geopolitical tensions in the Middle East, forcing investors to lock in profits and adopt a cautious stance. The trading week began on a promising note, with the market welcoming the unveiling of the Rs17.3 trillion federal budget for FY26. The government refrained from introducing any adverse fiscal measures for the capital markets, and in fact, Capital Gains Tax (CGT) provisions turned out better than expected. This encouraged mutual funds and institutional investors to divert funds towards equities. The KSE-100 Index settled at 122,144 points, reflecting a modest 0.4% week-on-week gain, or 502 points. Internationally, Asian markets kept their nerve on Monday and oil prices climbed anew as the conflict between Israel and Iran showed no sign of cooling, adding geopolitical uncertainty to the world's economic troubles in a week packed with central bank meetings. Yet there was no sign of panic among investors with currency markets calm and Wall Street stock futures steadying after an early dip. Oil did add 1% to last week's 13% surge in an inflationary pulse that, if sustained, should make the Federal Reserve even less likely to cut interest rates when it meets on Wednesday. Futures imply almost no chance of a reduction in the 4.25% to 4.5% rate band, and scant prospect of a move in July either. Markets will be particularly sensitive to any change in the Fed's 'dot plot' path for rates. Markets are still wagering on two easings by December, with a first move in September seen as most likely. For now, investors were waiting on developments and MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%. Japan's Nikkei firmed 0.8% and South Korean stocks added 0.5%. Chinese blue chips added 0.1% as data showed retail sales rose 6.4% in May to handily top forecasts, while industrial output was in line with expectations. S&P 500 futures rose 0.1% and Nasdaq futures gained 0.2%, recovering from an early dip. This is an intra-day update
Business Recorder
7 hours ago
- Business Recorder
Indian shares set for muted start to week as Middle East conflict dents sentiment
India's equity benchmarks are set to open little changed on Monday after two straight sessions of losses, as the conflict between Israel and Iran showed no signs of cooling, denting risk sentiment. The Gift Nifty futures were trading at 24,791 as of 7:32 a.m. IST, indicating that the Nifty 50 will open near Friday's close of 24,718.6. Both the benchmarks posted weekly losses on Friday as Israel's military strikes on Iran escalated tensions in the Middle East. Over the weekend, Israel and Iran launched fresh attacks, killing and wounding civilians and raising concerns of a broader regional conflict. Other Asian markets opened on a subdued note, with the MSCI Asia ex-Japan index losing 0.2%, while oil prices advanced on supply concerns due to geopolitical tensions in the oil-rich Middle East region. Financials, IT stocks weigh on Indian equity benchmarks A rise in oil prices is negative for importers of the commodity such as India, as crude constitutes a significant share of the country's import bill. Foreign institutional investors (FII) remained net sellers of Indian stocks for a third straight session on Friday, taking their net outflows in June to 54.02 billion rupees ($627.55 million) so far. Domestic institutional investors (DII) remained net buyers of Indian stocks for the 19th straight session on Friday.
Business Recorder
7 hours ago
- Business Recorder
Indian rupee braces for more losses on oil risks; RBI likely to provide support
MUMBAI: The Indian rupee is set to extend losses at Monday's open, weighed by fears that the intensifying Israel-Iran conflict is likely to increase oil prices further. Expectations that the Reserve Bank of India (RBI) will step in to curb depreciation pressures amid oil risks may offer some support to the local currency, traders said. The 1-month non-deliverable forward indicated an open in the 86.16-86.20 range, versus 86.08 in the previous session. The Indian currency had slipped to 86.20 on Friday — its weakest level in over two months — following Israel's attack on Iran. While it recovered from the day's lows, likely due to an RBI intervention, it still logged its worst daily performance in more than a month. Indian rupee to open nearly flat, holds upper hand as dollar remains vulnerable With the Israel-Iran conflict escalating over the weekend and on Monday, the rupee is unlikely to find relief. Early on Monday, Israel's air force attacked sites in central Iran with surface-to-surface missile. Brent crude jumped at open on Monday, climbing past $78, before pulling back. 'Oil's getting jumpy, and if prices keep climbing, it's hard to bet against (dollar/rupee) moving higher,' a dealer at a foreign bank said. 'That said, RBI won't just sit back — they'll keep a lid on things like they always do.' Other Asian currencies were mostly weaker at the start of the week, while the dollar index was little changed. The focus this week is on a series of central bank policy decisions, with the U.S. Federal Reserve's meeting on Wednesday taking centre stage. 'A further escalation in Iranian-Israeli tensions could take oil prices above $80 and would mean more upside for the dollar. The Fed was already likely to keep rates on hold through the third quarter and the latest developments only reinforce that,' ING Bank said in a note.
