Hello there, good morning.
A sudden US decision to scrap the Iran nuclear deal is sending out jitters through financial markets this morning. The move caused a sharp spike in oil prices, which will test the nerves of equity investors in emerging economies.
Nifty on Tuesday formed a weak chart pattern, signalling consolidation ahead.
That's the trade setup this morning.
This is Prachi Sharma, your market jockey, with the morning briefing to get you up and running for a busy day on Dalal Street.
Nifty futures in Singapore traded lower early today, signalling a rough ride in Mumbai trading.
Asian stocks traded lower. Major indices slipped after Trump decided to pull out of the 2015 Iran nuclear agreement. This has put West Asia into a fresh spell of uncertainty. Equity benchmarks in Japan and South Korea dipped, but those of Australia rose after that countrys government announced tax cuts.
Wall Street cut losses to end almost unchanged on Tuesday. Energy stocks rallied.
Oil prices rose more than 2 percent to a three-and-a-half year high on Wednesday. The fresh curbs of Iran may stall the OPEC members crude exports in an already tight market.
Brent crude oil futures rose to a session high of $76.75 a barrel, their highest level since November 2014. WTI crude futures hardened 2.2 percent to $70.61.
US Treasury yields advanced towards 3 per cent again, stoking gains in the dollar, which can potentially put pressure on emerging market currencies.
In March quarter earnings, Eicher Motors, Arvind, Federal Bank, Jindal Steel, Whirlpool and SPARC will report their numbers during the day.
The IPO mart comes alive today after a brief lull as the issue of Indostar Capital Finance kicks off today. The company raised Rs 553 crore from anchor investors on Tuesday.
The government doesnt want to take a stand in the controversy over conflictof-interest allegations against ICICI chief executive Chanda Kochhar until investigations are complete. That's why its nominee Lok Ranjan skipped the board meeting on Monday, ET quoted official sources as saying.
Tata Steel, the successful resolution applicant for Bhushan Steel, is facing resistance in its efforts to assert control over the companys main plant at Dhenkanal in Odisha, those briefed on the matter said.
Indias tax authorities are keeping a close watch on Walmarts acquisition of Flipkart, thats likely to be announced on Wednesday.
MDs of Syndicate Bank and Indian Bank could step down, following investigations against them over an alleged Rs 600-crore loan fraud at IDBI Bank where both previously worked.
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