GIFT Nifty down, signals weak start for Sensex, Nifty; Asian rally lends support but oil near $97 caps…

The latest market report highlights that Indian key market indices The two key benchmark indices are likely to open on a mildly negative note on Monday, with the GIFT Nifty indicating a soft opening. Oil price marks climbing above $96 a barrel and continuing US-Iran tensions keep market participants wary even amid firm upside across Asian markets. A robust US jobs report has additionally increased expectations of a The US central bank interest-rate gain this month, adding another source of uncertainty for global equities.

GIFT Nifty was trading at 23,963 around 8 am, down 47 points, or 0.2 percent, from its previous close. Indian equities snapped a four-session losing streak on Friday, led by buying in metal, oil & gas and private banking stocks. The Sensex advanced 362.57 points, or 0.48 percent, to 76,515.43, while the Nifty edged up 24.25 points, or 0.10 percent, to 23,897.70.

The global setup is mixed ahead of Monday's opening. Asian equities have rallied sharply following firm US jobs data, but the same report has strengthened expectations of another US Fed interest-rate gain. Markets are now pricing in a 58 percent probability of a The US central bank interest-rate gain at its September 16 meeting, while the probability of a move by October stands at 70 percent, according to Reuters.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

Asian markets surge on firm US jobs report, Wall Street falls on elevated rate-hike bets

Asian equities rose sharply on Monday as market participants viewed the robust US employment report as a positive signal for global economic expansion. Japan's Nikkei rebounded 2 percent, recovering after a similar slide last week, while South Korea's Kospi surged 3 percent. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.9 percent.

US stocks ended softer on Friday after the firm jobs report increased expectations that the The US central bank could raise its key interest rate at this month's policy meeting. The Dow Jones Industrial Average declined 0.51 percent to 53,413.60, the S&P 500 declined 0.38 percent to 7,718.41, while the Nasdaq Composite eased 0.29 percent to 26,506.99.

The robust labour-market reading presents market participants with a mixed signal: resilience in the US economy supports the global expansion outlook, but it additionally gives the Fed greater room to maintain a restrictive monetary stance as it seeks to control inflation. Attention will now shift to the US August CPI report due Friday.

Brent crude above $96 as US-Iran tensions escalate

Oil price marks edged elevated on Monday after the US and Iran attacked ships in the Gulf, further escalating a conflict that has already pushed energy prices sharply elevated. Brent crude advanced 0.2 percent to $96.45 a barrel, after climbing almost 10 percent last week, while West Texas Intermediate rose 0.4 percent to $91.85 a barrel.

Tehran stated it would announce a restricted zone outside the Strait of Hormuz over the upcoming days after US forces hit three Iranian tankers and Iran's Islamic Revolutionary Guard Corps rolled out ballistic missiles at two US Navy ships.

Ponmudi R, CEO of Enrich Money, anticipates 24,000-24,200 to stay the immediate resistance zone for the Nifty, while 23,800 is the key backing. A sustained move above 24,200 could improve the near-term structure, while a break below 23,800 could expose the index to 23,600.

Domestic institutional market participants continued to provide firm backing to Indian equities in the previous session. DIIs purchased equities worth Rs 8,930 crore on September 4, extending their buying streak to a 19th consecutive session. In the meantime, foreign institutional market participants remained net sellers for a second straight session, offloading equities worth Rs 3,111 crore.