Global Markets React to Middle East Crisis: Oil Surges Amid Tensions as India Awaits Trade
Indian equity markets are poised for a flat to positive start on July 15, despite finishing sharply lower in the previous session. The outlook is being guided by early trading activity seen in GIFT Nifty, which was reported around 24,045.50, indicating minimal volatility ahead. The market experienced significant selling pressure throughout the day, as key indices closed near their daily lows.Nifty and Sensex Settle Near Day's Lows Amid Selling Pressure
The domestic benchmarks reflected the prevailing global headwinds, closing lower on July 14. The Sensex registered a decline of 561.46 points or 0.72 percent, settling at 77,054.94. Similarly, Nifty closed down 158.95 points or 0.66 percent at 24,052.05.The downtrend was amplified by persistent selling pressure across several major sectors. Stocks in the IT, auto, and banking segments were particular drags on the index, preventing a strong close for both the Sensex and Nifty.
Global Equities Rally on Soft Inflation Data and Big Bank Results
International markets showed resilience, with Asian and US equities advancing amid positive developments. The S&P 500 gained 28.55 points or 0.38 percent, reaching 7,543.89. The Nasdaq Composite advanced by 233.83 points or 0.90%, closing at 26,107.01.The market rally was supported by robust big bank results and cooler-than-expected US inflation data. This combined strength boosted risk appetite globally, despite the escalating geopolitical tensions in the Middle East.
Crude Oil Rises as Geopolitical Tensions Escalate in Middle East
Crude oil prices surged on Wednesday after a major escalation between regional powers. The price rise was triggered by President Donald Trump reimposing a naval blockade on all Iranian ports. This was immediately followed by Iran launching retaliatory strikes against U.S. infrastructure in the area.In contrast, gold maintained stability following the release of lower than expected US monthly inflation figures. This data provided some relief to the Federal Reserve and lessened the pressure for an immediate rate hike.
Fund Flows and Currency Trends Mark Overnight Moves
In terms of fund flow action, domestic institutional investors (DIIs) injected capital into the markets, buying equities worth Rs 2927 crore. Foreign institutional investors (FIIs), however, sold equities worth Rs 739 crore on July 14.On a currency front, the dollar extended its weakness after tumbling from a two-week high. Meanwhile, several Asian currencies showed modest gains against the previous close, including the Malaysian ringgit, which appreciated by 0.34 percent. The US bond market saw both the yield on 10-year Treasuries and 2-year Treasuries decline marginally.
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