The selloff in the Indian stock market is expected to continue Wednesday, as a surge in crude oil prices weigh on investor risk-appetite amid the escalating US-Iran war in the Middle East. The trends on Gift Nifty also signal a gap-down start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 23,657 level, a discount of nearly 92 points from the Nifty futures' previous close.
“Indian equities are likely to remain under pressure amid weak global cues, elevated crude prices and continued concerns over supply disruptions following the latest escalation in US-Iran hostilities around the Strait of Hormuz,” said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are five key things to know ahead of the opening of the Indian stock market today:
Asian Markets
Asian markets traded mixed on Wednesday, as escalating war in the Middle East dented sentiment. Japan's Nikkei 225 rose 0.29%, while the Topix gained 0.45%. South Korea's Kospi rallied 0.70%, while the Kosdaq jumped 2.08%. Hong Kong Hang Seng index futures indicated a lower opening.
Wall Street
US stock market ended lower on Tuesday amid rising hostilities in the Middle East and as investors awaited inflation data for further cues on interest rates.
The Dow Jones Industrial Average plunged 1.18% to 52,786.07, while the S&P 500 fell 0.58% to end at 7,673.52. The Nasdaq closed 0.32% lower at 26,421.41.
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US-Iran War
US Central Command said its forces destroyed five Iranian tankers carrying crude oil in response to the attempts to hit a US Navy warship. The destroyed Iranian ships belonged to the Islamic Revolutionary Guard Corps. The US military said that the American ship wasn't hit and is still patrolling regional waters.
Crude Oil Prices
Crude oil prices surged to a fresh six-week high after Iran-backed Houthis in Yemen attacked Saudi energy facilities. Brent crude futures rallied 1.52% to $99.41 a barrel, while US West Texas Intermediate (WTI) crude rose 1.70% to $94.61.
IPOs Today
A total of six companies will launch their initial public offerings (IPO) today, September 9. These are Asset Reconstruction Company (India), Rentomojo, Karamtara Engineering, LCC Projects, Steamhouse India and Manipal Payment & Identity Solutions, aiming to raise combined over Rs 4,500 crore from the primary market.
ALSO READ: Trade Setup For Sept 9: Selloff To Worsen If Nifty Support Of 23,600 Breached, Analysts Warn
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