On a Monday morning in early August, Indian traders woke to a signal of cautious optimism: GIFT Nifty stood 170 points higher, suggesting the Nifty 50 would open well above Friday's close. The lift arrived because Donald Trump set aside an imminent strike on Iran in favour of talks meant to reopen the Strait of Hormuz and settle the dispute over Tehran's nuclear programme. In a market where energy costs carry the weight of geography and history, the sudden drop in crude felt like a brief easing of an old anxiety, though the talks themselves remain unfinished business.
GIFT Nifty Jumps 150+ Points as Crude Falls on US-Iran Talk Hopes, Signalling Gap-Up Open for Sensex and Nifty
Crude fell as much as 7.3 percent on the promise of talks
Mark
GIFT Nifty is up 170 points. Why does that matter before the market even opens?
Mimi
It's the early read on where the Nifty will start. At 24,618 against Friday's close of 24,383.60, it points to a clearly higher open.
Mark
And the reason is oil?
Mimi
Mostly. Trump said talks with Iran would happen Monday and called off a planned strike. Brent fell as much as 7.3 percent to $81.55.
Luke
Keep in mind that's an indicator, not an actual open. And the crude drop rests on a statement that talks will happen, not on any outcome from them.
Mark
Fair. Is there anything else supporting the market?
Mimi
Foreign investors bought Rs 277 crore on Friday, a fourth straight session of net buying. Domestic institutions added Rs 2,260 crore. Wall Street also closed higher.
Luke
Though the FII figure is modest next to the domestic one. It's a streak, not yet a surge.
Mark
And Asia was weaker?
Mimi
Mixed. The Kospi fell as much as 5.5 percent on profit-taking in tech, with Samsung and SK Hynix down around 9 percent each.
Luke
The report doesn't say whether that spills over to India. Whether the talks actually reopen the Strait of Hormuz is also unknown.
O Pulso
- GIFT Nifty jumped about 0.7 percent to 24,618, pointing to a sharp gap-up open after Friday's close of 24,383.60.
- Brent crude plunged as much as 7.3 percent to $81.55 a barrel the moment Trump called off a strike on Iran.
- Talks scheduled for Monday aim to reopen the Strait of Hormuz and resolve the nuclear impasse, and traders are betting on a lower risk of prolonged energy disruption.
- Kospi tumbled up to 5.5 percent as Samsung and SK Hynix shed around 9 percent each, showing the rally in Asian tech is fragile.
- Foreign investors have bought Indian equities for four straight sessions, and the outcome of the US-Iran talks will determine whether that momentum holds.
On a Monday morning in early August, Indian traders woke to a signal of cautious optimism: GIFT Nifty stood 170 points higher, suggesting the Nifty 50 would open well above Friday's close. The lift arrived because Donald Trump set aside an imminent strike on Iran in favour of talks meant to reopen the Strait of Hormuz and settle the dispute over Tehran's nuclear programme. In a market where energy costs carry the weight of geography and history, the sudden drop in crude felt like a brief easing of an old anxiety, though the talks themselves remain unfinished business.
GIFT Nifty was trading at 24,618 on Monday morning, up 170 points or 0.7 percent, a signal that the Sensex and Nifty 50 were set for a strong open. Friday's Nifty close of 24,383.60 left the indicated opening well above it, and Indian traders greeted the news with relief.
The spark was oil. Donald Trump announced that talks with Iran would begin Monday and that he had called off an imminent military strike in their favour. The negotiations aim to reopen the Strait of Hormuz and address Tehran's nuclear programme. Markets took this as a reduced threat of prolonged energy disruption, and Brent crude fell as much as 7.3 percent to $81.55 a barrel. For India, a major oil importer, cheaper crude is usually good news.
The domestic market had already been climbing, with three straight sessions of gains. Foreign institutional investors had been net buyers for four consecutive sessions, while domestic institutions added significantly more. Across Asia, however, the picture was uneven. South Korean technology stocks slid as investors took profits after a sharp rally, with the Kospi down as much as 5.5 percent. On Wall Street, Friday's gains were supported by Amazon's strong results and renewed confidence in AI spending.
What comes next rests largely on the talks. Investors will be watching crude prices, global equities, and whether foreign buying in Indian shares continues.
GIFT Nifty was trading at 24,618 on Monday morning, up 170 points, or 0.7 percent. That is the signal Indian traders woke up to, and it points to a sharp gap-up open for the Sensex and the Nifty 50. Friday's Nifty close was 24,383.60, so the indicated opening sits well above it.
The main driver was oil. US President Donald Trump said talks with Iran would take place on Monday, and he called off an imminent military strike in favour of negotiations. The talks are meant to reopen the Strait of Hormuz and to resolve the impasse over Tehran's nuclear programme. Markets read that as a lower risk of prolonged disruption to energy supplies.
Crude reacted quickly. Brent futures fell as much as 7.3 percent to $81.55 a barrel. US West Texas Intermediate dropped 5.4 percent to $80.10 a barrel. For India, a heavy importer of oil, falling crude is usually welcome news for equities.
The Indian market was already on a run. On Friday the Sensex rose 166.49 points, or 0.21 percent, to close at 78,094.64. The Nifty gained 66.45 points, or 0.27 percent, to finish at 24,383.60. That made three straight sessions of gains for both benchmarks.
Foreign money has been helping. Foreign institutional investors were net buyers for a fourth consecutive session on Friday, purchasing Indian equities worth Rs 277 crore. Domestic institutional investors bought shares worth Rs 2,260 crore. The buying has improved sentiment after bouts of foreign selling earlier in the month.
The global picture was less uniform. Asian markets traded mixed on Monday as investors booked profits in South Korean technology stocks after last week's sharp rally. The Kospi fell as much as 5.5 percent, with Samsung Electronics and SK Hynix each down around 9 percent. Japan's Nikkei slipped 1 percent, and MSCI's broadest index of Asia-Pacific shares outside Japan declined 1 percent.
Wall Street, by contrast, ended Friday higher. Amazon's better-than-expected quarterly results strengthened confidence in AI-related spending and outweighed weakness in Apple shares after its earnings. The S&P 500 advanced 0.70 percent, the Nasdaq gained 1 percent and the Dow Jones Industrial Average rose 0.53 percent. US futures stayed positive on Monday, with S&P 500 futures up 0.4 percent and Nasdaq futures up 0.6 percent.
What happens next depends largely on the proposed US-Iran talks. Investors will also watch crude prices, global equity markets and whether foreign buying in Indian shares continues.
Citações Notáveis
Talks with Iran would take place on Monday, with a planned military strike called off in favour of negotiations.— US President Donald Trump, as reported by Moneycontrol
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Leia o original em Moneycontrol ↗
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