Indian shares set to open higher on ceasefire optimism, weaker oil prices
India's equity benchmark indexes are expected to open higher on Tuesday, tracking gains in broader Asian markets, after U.S. President Donald Trump announced a ceasefire agreement between Iran and Israel, pushing oil prices lower.
A drop in crude oil prices would be a relief for India, which relies heavily on imports to meet its energy needs, as higher prices can fuel inflation and widen the fiscal deficit.
The Gift Nifty futures were trading at 25,236, as of 7:50 a.m. IST, indicating that the Nifty 50 will open above the previous close of 24,971.9.
Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that prompted fears of further escalation in the war-torn region and briefly pushed oil prices to a five-month high on Monday.
Indian stocks set to slip after US attack on Iran's nuclear sites
Following the ceasefire announcement, oil prices dived to a one-week low, and MSCI Asia ex Japan climbed more than 1.5%.
The benchmark Nifty and Sensex indexes slipped about 0.6% each on Monday, pressured by foreign investor selling amid rising tensions in the Middle East.
Despite the market uncertainty, the 50-stock index has gained about 1% in June, poised for a fourth consecutive monthly gain, on central bank's easing policy measures and strong domestic growth prospects.
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an hour ago
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Trump says Iran-Israel ceasefire in force
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Business Recorder
an hour ago
- Business Recorder
KSE-100 surges nearly 5,900 points as ceasefire hopes drive rally
Buying spree returned to the Pakistan Stock Exchange (PSX) as investors rejoiced after US President Donald Trump said Iran and Israel had agreed to a ceasefire, with the benchmark KSE-100 Index gaining nearly 5,900 points during the intra-day trading on Tuesday. At 11:30am, the benchmark index was hovering at 122,045.62 level, an increase of 5,878.15 points or 5.06%. Across-the-board buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including HUBCO, ARL, SSGC, PSO, MARI, OGDC, PPL, POL, UBL and HBL traded in the green. 'The ceasefire announcement and a 3-4% drop in international oil prices are driving the buying rally at the bourse,' said Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder. 'The market believes the geopolitical situation will now come under control,' she added. Intense selling pressure gripped the PSX on Monday amid escalating geopolitical tensions following a US attack on Iran, with the benchmark KSE-100 settling with a loss of nearly 3,900 points. At close, the KSE-100 Index settled at 116,167.47 level, a decrease of 3,855.77 points or 3.21%. Internationally, global shares rallied and the dollar extended declines on Tuesday after US President Donald Trump said Iran and Israel had agreed to a ceasefire, sending oil prices into a deep dive as concerns over supply disruptions ebbed. While an Iranian official earlier confirmed that Tehran had agreed to a ceasefire, the country's foreign minister said there would be no cessation of hostilities unless Israel stopped its attacks. Oil prices fell over 3%, having already slid 9% on Monday when Iran made a token retaliation against a US base, which came to nothing and signalled it was done for now. With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, U.S. crude futures fell another 3.4% to $66.15 per barrel, the lowest since June 11. Risk assets rallied, with S&P 500 futures up 0.6% and Nasdaq futures 0.9% higher. EUROSTOXX 50 futures jumped 1.3% and FTSE futures rose 0.4%. The MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.8% while Japan's Nikkei rallied 1.4%. This is an intra-day update
