Indian market set for upbeat start as Asian stocks slip on firm oil prices
The GIFT Nifty points to a positive opening for the Nifty50 on Tuesday, while major Asian indices fell amid higher oil prices and US rate-rise concerns.
After a holiday closure for Ganesh Chaturthi, the GIFT Nifty indicated that the Nifty50 would open higher on Tuesday, with futures at 23,525, a gain of 39 points. Across the Asia-Pacific region, equity markets retreated; Hong Kong's Hang Seng fell 0.62% and South Korea's Kospi dropped 0.32% as investors assessed the inflation outlook and the likelihood of a US Federal Reserve rate increase at its upcoming meeting. In the United States, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite each ended the day lower, ranging from a 0.29% decline to a 0.56% drop.
Oil prices climbed, with September futures at $107.06 per barrel on the Intercontinental Exchange, driven by supply concerns after recent attacks on Saudi Arabia's energy infrastructure. Precious-metal futures slipped, with gold and silver each down 0.21% as rate-hike expectations dulled their appeal. Several IPOs continued their offerings, and Pranav Constructions debuted on the exchanges with a grey-market premium suggesting a 41.94% listing gain.
Why it matters
The outlook for India's leading index influences domestic investors and reflects broader global market pressures from oil prices and US monetary policy.
How this story developed
- Aug 19 Fed officials warn higher rates may be needed if inflation stays elevated
- Sep 6 In a bid to steady the bond market, the Treasury said it will buy back $6 billion of longer-term securities, including 10-year and 20-year Treasuries. The move followed a recent increase in yields that worried investors and budget analysts. Shortly after the announcement, the benchmark 10-year yield rose to 4.84%, its highest level since 2023, while the 20-year reached 5.3%. Critics, such as Stanley Druckenmiller, argue that suppressing yields masks the true cost of debt.
- Sep 7 Iran claimed to have hit an unmanned U.S. vessel in the Strait of Hormuz, which the U.S. dismissed as false.
- Sep 8 Iran announced it will double the price of fuel consumed beyond its quota.
- Sep 8 Iran’s Fars news agency reported an explosion heard in the southern Jask area off the Gulf of Oman and east of the Strait of Hormuz.
- Sep 9 The buyback size was increased from $4 billion to $6 billion.
- Sep 10 Oil prices have risen above $95 a barrel amid renewed Middle‑East tensions.
- Sep 10 New reporting highlights a sharp inflation jump and rising fuel costs, reinforcing expectations of a deposit‑rate increase.
- Sep 10 The ECB implemented a 0.25‑point rate increase across its three principal rates.
- Sep 11 Asian stock markets fell on Friday, mirroring Wall Street losses, while Brent crude rose above $108 a barrel as geopolitical strains between the United States and Iran intensified.
- Sep 11 Fed minutes revealed a 9‑3 vote to keep rates near 3.6% and a drop in market odds for a September hike to about 67%.
- Sep 11 August US CPI held steady at 3.4% year‑over‑year and core CPI fell to 2.4%.
- Sep 12 Oil prices rose to just below $109 a barrel as Middle‑East tensions escalated.
- Sep 12 Markets priced in a strong chance of another quarter‑point hike in December.
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