Stock markets are expected to open with minimal changes today due to global tensions causing caution among investors. The ongoing conflict involving Iran and recent warnings from US President Donald Trump have introduced uncertainty, although some positive updates from banks are providing limited support.
At 7:52 am, GIFT Nifty futures were trading at 22,734, indicating that the Nifty 50 index may open around its previous closing level of 22,713.1 points.
Friday saw markets closed in observance of Good Friday, resulting in today’s opening reflecting developments over the extended weekend.
Investor sentiment remains guarded following Trump’s stern message to Iran regarding the Strait of Hormuz. This crucial waterway facilitates a significant portion of global energy transportation, handling approximately one-fifth of the world’s oil and gas.
With the conflict entering its fifth week, uncertainty prevails. The ongoing closure of the Hormuz route has raised concerns about potential disruptions in supply chains.
The situation has caused a sharp rise in crude oil prices, with Brent crude surpassing $110 per barrel, impacting global markets. Higher oil prices are typically viewed unfavorably for oil-importing countries like India.
Asian markets displayed mixed trends, mirroring the uncertain global economic landscape.
Indian markets have been under pressure lately, with the Nifty 50 and Sensex declining by 0.5% and 0.4%, respectively, last week. This marked the sixth consecutive week of losses, attributed to the ongoing conflict and escalating energy prices.
Over the weekend, major banks released their quarterly business updates, potentially boosting sentiment in today’s trading session. Private banks saw steady loan growth, while some public sector banks noted slight improvements supported by increased demand for working capital.
HDFC Bank reported a 10% increase in average advances for the March quarter, with deposits growing at a faster rate of 12.8%. Kotak Mahindra Bank and Bajaj Finance also witnessed rises in advances and new loans, respectively.
The numbers indicate stable credit demand despite global uncertainties.
Wipro’s upcoming acquisition of Mindsprint, a subsidiary of Singapore-based Olam Group, for $375 million is set to enhance the company’s digital and enterprise services offerings.
Today’s market session is likely to remain range-bound, with supportive updates from banks offset by concerns over rising oil prices and global tensions. Investors will monitor fresh developments in the Iran conflict, movements in crude oil prices, and global market cues closely.
Amid the ongoing uncertainty in the Middle East, cautious sentiment is expected to prevail.