Opening Bell : Markets to make gap-down opening amid jump in crude oil prices
Indian equity markets are likely to make gap-down opening on Monday following weak global markets as crude oil futures prices jumped over $100 per barrel in early Asian session as the ongoing US-Iran conflict escalated over the weekend, fueling supply disruption fears. Additionally, some cautiousness may come from foreign portfolio investors, who recorded net sales of equities worth Rs 6,030.38 crore on Friday.
Some of the key factors to be watched:
Prolonged Middle East crisis can impact exchange rate, fuel inflation: A finance ministry report has cautioned that prolonged crisis in the Middle East can have adverse implications on the exchange rate and and may stoke inflationary pressures on account of rising prices of petroleum goods and fertilisers.
India secured best trade deal with US among competing nations: Commerce and Industry Minister Piyush Goyal said that India has secured the best trade deal with the US compared to its competing nations, noting that the two countries share a very powerful relationship.
Govt grants exporters relief on export obligations amid West Asia crisis: The government has granted certain relaxations to exporters in fulfilling their export obligations, as the trading community is facing difficulties in the movement of goods due to the ongoing West Asia crisis.
India enhances maritime security in West Asia: The government said it has strengthened monitoring and preparedness measures in view of the evolving maritime situation in the West Asia region, with a focus on safeguarding Indian seafarers and vessels and maintaining continuity of maritime trade.
RBI to conduct Rs 1 lakh crore G-Sec purchase auction in two tranches: The Reserve Bank of India (RBI) said it will conduct Rs 1-lakh crore open market operation (OMO) purchase of government securities in two tranches on March 9 and March 13. Each tranche of the auction will consist of Rs 50,000 crore.
On the global front: The US markets ended in red on Friday amid an extended surge by the price of crude oil, with U.S. crude oil futures soaring above $90 a barrel. Asian markets are trading in red on Monday following the broadly negative cues from Wall Street on Friday amid the escalating conflict in the Middle East.
Back home, Indian equity benchmarks tumbled over a per cent on Friday after a day's breather as the conflict in the Middle East entered its seventh day, driving crude oil prices higher. Weakness in the US equities, subdued trend in European markets and relentless foreign fund outflows also dampened sentiments. Finally, the BSE Sensex fell 1097.00 points or 1.37% to 78,918.90 and the CNX Nifty was down by 315.45 points or 1.27% to 24,450.45.
Some of the important factors in trade:
West Asia conflict likely to add pressure on Indian rupee, inflation amid energy supply risks: Moody's Ratings said India could face pressure on the rupee, higher inflation and a widening current account deficit if the escalating Middle East conflict spikes energy prices and disrupts supplies, given its heavy dependence on crude and LNG imports from the region.
US to work closely with India to meet energy needs amid conflict in West Asia: US Deputy Secretary of State Christopher Landau has said that the United States (US) will work closely with India to ensure the country’s energy requirements are met in both the short and long term, amid fears over disruptions in crude oil flows following ongoing conflict in West Asia.
No significant upside to $63/Bbl Brent price estimates for 2026: Fitch Ratings said the $63/bbl estimation for average Brent crude price for 2026 is unlikely to see any significant upside as the Strait of Hormuz closure would be only temporary and global oil market oversupply should limit oil price rises.
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