MUMBAI: India’s stock markets opened on a weak note on Friday as investors reacted to geopolitical concerns after the United States announced the revocation of sanctions waiver for Iran’s Chabahar Port, effective September 29. The move weighed on investor sentiment in early trade.
The Nifty 50 index opened at 25,365.20, down by 58.40 points or 0.23 per cent, while the BSE Sensex started at 82,835.73, registering a decline of 178.23 points or 0.21 per cent.
Market participants attributed the pressure to the Trump administration’s fresh decision to withdraw the special waiver that had been granted to India in 2018 for operations at the Chabahar Port in Iran.
According to a statement issued by the US Department of State, operators of the Chabahar Port will face American sanctions beginning September 29. The move, seen as another hard step by Washington against India, raised concerns for New Delhi’s strategic and trade interests.
For the Adani Group almost all stocks opened in green as the Securities and Exchange Board of India (SEBI) on Thursday gave its conclusion in the matter of the allegations made by US Short seller Hindenburg against the Adani Group.
SEBI concluded that there is no violation of listing agreement or SEBI Listing Obligations and Disclosure Requirements (LODR) and the impugned transactions do not qualify as “related party transactions”.
Despite the negative start, market experts remained positive on the outlook for Indian equities. Ajay Bagga, Banking and Market Expert, told ANI that multiple boosters were supporting the domestic market.
“Tax revenues are showing strength. There is talk of the government tasking every ministry with enhancing infrastructure spending to boost the economy this year. Then the global stimulus coming via the Fed rate cut and projections of more to come. Fourth is the Trump Xi phone exchange this evening which could see some progress and an invite to Trump to visit China. UK has made the template for royal treatment to Trump, expect other countries to follow suit,” he said.
He further added that the Chief Economic Adviser had spoken about 25 per cent punitive tariffs being removed in the coming weeks, with an overall trade deal at 10-15 per cent for India, which would support the markets.
In the broader market indices on the NSE, the Nifty 100 opened under pressure, while the Nifty Midcap 100 gained 0.25 per cent and the Nifty Small Cap 100 also edged up 0.11 per cent.
Among sectoral indices, the Nifty Auto was up by 0.01 per cent, Nifty FMCG slipped 0.21 per cent, and Nifty IT declined 0.67 per cent. However, Nifty Oil and Gas opened with gains of 0.41 per cent.
Vikram Kasat, Head Advisory, PL Capital, said the US market dynamics were supportive for equities globally. “US stocks have been breaking so many records lately that it’s starting to feel par for the course. A rate-cutting cycle, combined with a record-setting stock market run and an economy that continues to grow–albeit at a slower pace than the past few years–is a bullish dynamic for stocks,” he said. (ANI)
