GIFT Nifty flat as Indian markets shut for Ganesh Chaturthi; oil jumps above $107, Asian stocks fall

As per the latest business developments, GIFT Nifty traded largely flat on Monday even as Asian equities and US stock futures declined, with a fresh surge in oil price marks and growing expectations of a US Fed interest-rate gain weighing on global risk appetite. Indian bourses are closed today, September 14, for Ganesh Chaturthi, meaning the global moves will feed into domestic equities only when trading resumes.

GIFT Nifty was at 23,467 around 8:45 am, up 11.5 points, or 0.05 percent. Indian equities had recovered sharply from their intraday lows on Friday but still finished marginally softer. The Sensex declined 120.83 points, or 0.16 percent, to 74,781.76, while the Nifty declined 79.70 points, or 0.34 percent, to 23,398.10.

Asian stocks decline; Nasdaq futures slide

Asian equities declined on Monday, with technology stocks under particular pressure after major AI firms called for a slowdown in the development of the technology, raising fresh concerns around a sector that has powered much of this year's equity surge.

MSCI's Asia Pacific equities index declined 0.9 percent, while South Korea's Kospi — viewed as a barometer of the AI investment trade — eased 3 percent. Hong Kong's Hang Seng declined 0.4 percent, while the Shanghai Composite was little changed. Japan's Topix and Australia's S&P/ASX 200 bucked the broader softness, gaining 0.3 percent each. US equity futures additionally softened, with Nasdaq 100 futures falling 1.2 percent and S&P 500 futures down 0.4 percent.

The global risk-off tone comes ahead of a crucial week for monetary policy, with market participants preparing for potential rate increases in both the US and Japan.

US Fed interest-rate gain increasingly priced in after hot consumer inflation

The soft opening to Asian trade follows upside on Wall Street on Friday, when a retreat in crude prices provided some relief despite the stronger inflation reading. The S&P 500 advanced 0.86 percent to 7,656.98, the Nasdaq rose 0.96 percent to 26,333.04, while the Dow Jones Industrial Average advanced 0.98 percent to 52,573.29.

That stated, those upside preceded Monday's renewed surge in crude prices and the softness in US equity futures.

Market participants are now preparing for Wednesday's US The US central bank policy decision after hotter-than-anticipated US consumer inflation data on Friday strengthened expectations of a rate gain. Reuters noted that the markets are pricing in an 86 percent probability of a 25-basis-point Fed interest-rate gain on Wednesday, which would be the central bank's first gain since mid-2023. Expectations have additionally increased that the Fed could tighten policy again by December.

Brent jumps above $107 on fresh Middle East attacks

Oil price marks surged again on Monday as escalating attacks in the Middle East further noted to concerns around disruptions to global energy supplies.

Brent crude futures jumped $2.90, or 2.77 percent, to $107.51 a barrel, while West Texas Intermediate advanced $2.27, or 2.27 percent, to $102.32. The latest move followed fresh Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf, compounding supply concerns after the closure of a key Saudi oil pipeline.