Daijiworld Media Network – Mumbai
Mumbai, Jun 12: The Indian equity benchmarks opened on a muted note Thursday, with BSE Sensex hovering above the 82,500 mark, and Nifty50 steady above 25,150, reflecting a cautious undertone among investors amid global trade tensions and rising oil prices.
As of 9:18 AM, Nifty50 was trading at 25,155.95, a marginal gain of 15 points (0.058%), while the BSE Sensex rose 34 points to 82,549.09 (0.041%).
Market experts point to a lack of strong domestic triggers, with sentiment now tied closely to geopolitical and global trade developments. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The market’s flat trajectory is likely to persist until a decisive trigger emerges. While there is buzz around a potential US-China trade deal and ongoing India-EU FTA discussions, no confirmations have come from China’s side. Additionally, President Trump’s tariff threats further cloud the picture.”
Adding to market jitters, Brent crude oil prices surged past $70 per barrel, spurred by escalating tensions in the Middle East. This rise could adversely affect fuel-intensive sectors like aviation, tyres, paints, and adhesives, while oil producers like ONGC and Oil India may benefit.
Global cues remain mixed. US markets dipped on Wednesday, with the S&P 500 closing lower due to Middle East tensions. Meanwhile, a modest US inflation report tempered fears of tariff-induced inflation, offering hope of potential rate cuts from the Federal Reserve.
US index futures and the dollar weakened after President Trump’s declaration of unilateral tariff plans within the next two weeks. Investors are closely tracking these developments for signs of possible escalations.
Gold prices climbed on Thursday, as safe-haven demand grew on geopolitical uncertainties. Meanwhile, oil prices hit a two-month high following reports of US troop withdrawal from the Middle East — a move that heightened concerns over potential disruptions in Iranian crude supply.
In terms of institutional activity, Foreign Institutional Investors (FIIs) net sold shares worth Rs 446 crore on Wednesday, whereas Domestic Institutional Investors (DIIs) were net buyers, purchasing Rs 1,585 crore worth of equities.
Meanwhile, FIIs’ net short positions in the futures market saw a decline from Rs 93,024 crore on Tuesday to Rs 86,594 crore on Wednesday, indicating marginal relief in bearish bets.
With macroeconomic indicators fluctuating and global factors dominating investor sentiment, traders are expected to tread carefully as markets await clarity on tariffs, oil supply, and international diplomacy.