Benchmark stock indices Sensex and Nifty are in focus on June 16, Monday, as Iran has reportedly told mediators Oman and Qatar that it was not open to negotiating a ceasefire while under Israeli attack, saying it did not seek to engage the US to broker a ceasefire, Reuters reported, sending Brent crude oil prices soar above $75 a barrel mark.
US President Donald Trump, on the other hand, the fighting may continue before any deal is Iran-Israel deal is reached.
Gift Nifty was trading 51.60 points, or 0.21 per cent, higher at 24,779. Asian markets were largely mixed, with Japan’s Nikkei and Korea’s Kospi rising 0.74 per cent and 0.29 per cent, respectively. Hong Kong’s Hang Seng and China’s Shanghai Composite were down up to 0.3 per cent.
“We expect the markets to pause for breath after a frenetic 10 per cent Nifty rally since the tariff pause announcement on April 9. Valuation comfort has largely eroded and escalation of the Middle-East conflict could trigger a sell-off. From a medium-term perspective, though, we are not worried. The crude price spike is likely to be transient and India’s fundamentals are otherwise looking up,” said Emkay Global in a note.
This brokerage sees an earnings recovery on the back of aggressive RBI easing and weak commodity prices.
“Looking ahead, markets are likely to remain volatile amid ongoing geopolitical uncertainty and crucial central bank meetings. The U.S. Federal Reserve’s upcoming policy decision will be closely tracked, as market participants look for clarity on the timing and magnitude of potential rate cuts, especially in light of mixed economic signals,” said Ajit Mishra – SVP, Research at Religare Broking Ltd.
Domestically, the focus will remain on the progress of the monsoon, crude oil price trends, WPI inflation data, and FII activity, he said.
“Our sector preferences are unchanged and we are positive on Discretionary, Technology, and Materials, and UW on Financials and Staples. Our weekly product returns in a new avatar – a changed title and a new cycle of weekend publication,” Emkay Global said.