Indian equity benchmarks opened higher on Monday, with the BSE Sensex gaining 176.99 points or 0.23 per cent to reach 77,940.90, while the Nifty 50 rose by 36.00 points or 0.15 per cent to trade at 24,306.85. The positive start followed mixed trends across Asian peers, with the GIFT Nifty trading at 24,365.50 and the Hang Seng advancing to 23,476.00.
Asian Market Trends
Minor positive movements were also seen in the Shanghai Composite at 4,046.71 and Thailand's SET Composite at 1,612.30. On the other hand, South Korea's KOSPI showed the sharpest decline, dropping to 7,933.28, closely followed by Japan's Nikkei 225, Taiwan Weighted, Singapore's Straits Times, and the Jakarta Composite.
Primary Market Activity
The Indian primary market witnessed a substantial wave of capital raising. Institutional promoters and private equity players utilized mega public issues and massive Offers for Sale (OFS) to monetize current valuations.
Expert Commentary
Ajay Bagga, banking and market expert, said, "India remains a buy-on-dips market, with the Nifty 200EMA a key resistance, which once pierced could lead to a sustainable rally after years of underperformance. Sectors that look attractive are financials, pharma, telecom, real estate and defence."
Commodity Market Movements
The commodities segment reflected a downward movement. At the time of filing, Brent Crude traded lower at USD 71.74 per barrel, down by 0.51 per cent; Crude oil sat at USD 68.44 per barrel, down by 0.47 per cent; and Gold registered a minor drop to USD 4,165.62, down by 0.11 per cent.
"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 (bpd)," Bagga noted. "While the Strait of Hormuz experiences tight regulatory and security pressures, the actual movement of physical barrels is restricted. If or when shipping tensions ease, the market could shift rapidly from an artificial shortage to a physical surplus," Bagga added.
Global Commodity Sensitivity
Global commodity trends remain highly sensitive to macroeconomic indicators from the United States, particularly labor data and central bank policy expectations. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said, "Gold prices edged higher as a weaker US dollar and softer-than-expected US 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 mentioned that gains remained limited as inflation continues to stay above the Fed's target, keeping policymakers cautious about easing financial conditions.
US Market Performance
In the US markets, the Dow Jones Futures stood at 52,841.29, showing a decline of 0.11 per cent. Meanwhile, the S&P 500 stood relatively flat at 7,483.24. At the same time, the Nasdaq experienced a more notable drop, standing at 25,832.67, representing a dip of 0.80 per cent.
"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. Market could see some volatility after Friday's US Independence Day holiday," Modi noted.
