New Delhi [India], July 6 (ANI): Indian equity markets opened higher on Monday, with the benchmark indices trading in positive territory at the opening bell.
The BSE Sensex rose 176.99 points, or 0.23%, to 77,940.90, while the Nifty 50 gained 36.00 points, or 0.15%, to trade at 24,306.85.
The positive opening came despite mixed performance across Asian markets. GIFT Nifty traded at 24,365.50, while Hong Kong’s Hang Seng Index advanced to 23,476.00.
Modest gains were also recorded in the Shanghai Composite, which rose to 4,046.71, and Thailand’s SET Composite, which climbed to 1,612.30. Meanwhile, South Korea’s KOSPI posted the steepest decline, followed by losses in Japan’s Nikkei 225, Taiwan Weighted Index, Singapore’s Straits Times Index, and Indonesia’s Jakarta Composite.
India’s primary market also continues to witness strong capital-raising activity, with institutional promoters and private equity investors using large public issues and Offers for Sale (OFS) to monetize current market valuations.
Ajay Bagga, a banking and markets expert, said, “India remains a buy-on-dips market, with the Nifty 200 EMA serving as a key resistance level. Once that is breached, it could trigger a sustainable rally after years of underperformance. Sectors that look attractive are financials, pharma, telecom, real estate, and defense.”
Commodity markets were trading lower during early trade. At the time of reporting, Brent crude fell 0.51% to USD 71.74 per barrel, while WTI crude declined 0.47% to USD 68.44 per barrel. Gold also edged lower by 0.11% to USD 4,165.62 per ounce.
“To address high structural oil prices, seven core OPEC+ nations, led by Saudi Arabia and Russia, have enacted their second consecutive monthly production adjustment, increasing July output quotas by 188,000 barrels per day,” Bagga said.
“While the Strait of Hormuz continues to face regulatory and security pressures, the movement of physical oil shipments remains constrained. If shipping tensions ease, the market could shift rapidly from an artificial shortage to a physical surplus,” he added.
Global commodity prices remain highly sensitive to U.S. macroeconomic data, particularly labor market indicators and expectations surrounding Federal Reserve policy.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd., said, “Gold prices edged higher as a weaker U.S. dollar and softer-than-expected U.S. labor market data prompted investors to reduce expectations of a Federal Reserve interest rate hike this year. The weaker nonfarm payrolls and unemployment data released last week eased concerns that the Fed would need to tighten monetary policy further, providing support to bullion after months of pressure from elevated rate expectations.”
Modi noted that gains in gold remained limited because inflation continues to stay above the Federal Reserve’s target, keeping policymakers cautious about easing financial conditions.
In U.S. markets, Dow Jones futures were down 0.11% at 52,841.29. The S&P 500 futures were largely unchanged at 7,483.24, while Nasdaq futures declined 0.80% to 25,832.67.
“Focus this week will remain on the Fed minutes, U.S. inflation expectations, and speeches from Federal Reserve officials for further guidance on the interest rate outlook and the direction of gold prices. Markets could see some volatility following Friday’s U.S. Independence Day holiday,” Modi said. (ANI)
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