Opening Bell - Morning Commentary

Geopolitical Uncertainties Keeps Markets on Edge.

Crude oil fell sharply after reports that the International Energy Agency (IEA) is preparing its largest-ever emergency release to address the ongoing supply shortage. The Paris-based body, comprising 32 member states and 13 associate countries, represents up to 75% of global energy demand. Brent Crude oil is currently trading near $90 from its Monday spike near $120 per barrel.

U.S. equities lost momentum on Tuesday as the S&P 500 surrendered early gains to close negative, with the Dow turning lower as well, while the Nasdaq eked out a marginal gain.

Markets were unsettled by fading hopes for an early end to the U.S.-Israeli war on Iran and stagflation concerns — compounded after President Trump threatened retaliation over reports of Iran mining the Strait of Hormuz and demanded Iran's unconditional surrender.

Fresh Iranian strikes and mixed White House messaging continued to cloud the outlook. A tanker explosion near Abu Dhabi further reignited Middle East uncertainty, erasing earlier gains.

The pan-European Stoxx 600 rose 1.8%, snapping a three-session losing streak, as retreating oil prices eased inflation and jet fuel concerns.

Airline stocks led the rebound — Lufthansa and Air France surging approximately 7% and 5% respectively — while Volkswagen rose over 3% despite a 53% year-on-year drop in operating profit.

Asian markets are higher today as easing oil prices lifted sentiment. Japan's Nikkei 225 jumped 2% while South Korea's Kospi advanced 3%, recovering a portion of the steep losses sustained earlier in the week, as oil prices pulled back on hopes that emergency crude reserves would be tapped to offset supply disruptions.

President Trump announced that Reliance Industries will back oil refinery at the Port of Brownsville, Texas — the first new U.S. refinery in 50 years, framing it as the largest deal in U.S. history.

After two days of sharp declines, the Nifty staged a strong rebound, closing higher by 233 points or 0.97% at 24,261 yesterday. Nifty stagged a pullback amid strong global cues, reclaiming over 500 points from recent low of 23697. On the higher side, immediate resistance is placed in the 24300-24415 band while 24000 is likely to act as immediate support.

Indian markets are poised to open moderately lower in line with subdued US market cues.