Trump’s Announcement Sends Crude Prices Crashing

Mumbai: Indian stock markets are likely to open on a strong note today after a sharp fall on Monday, as global cues turn significantly positive. The momentum comes in the wake of a major announcement by former US President Donald Trump, which sent crude oil prices tumbling. The fall in oil prices is expected to ease inflationary concerns, offering relief not just to Indian investors but across emerging markets.

In late trading on Monday, Trump hinted that if re-elected, his administration would take a far less aggressive stance on Middle East conflicts. This softening tone immediately impacted global crude prices, with Brent Crude falling nearly 4% in after-hours trading, and WTI also showing a notable drop. For India, a net importer of crude oil, this decline spells good news.

Asian markets responded positively, with indices in Japan, South Korea, and Hong Kong trading in the green. The Nikkei was up nearly 1.2%, while the Hang Seng surged 1.5% in early trade. These gains, combined with easing tensions and lower commodity costs, have set the stage for a bullish opening for Indian indices like the Sensex and Nifty.

On Monday, Indian markets had faced a steep correction driven by geopolitical tensions, with the Sensex losing over 800 points. However, sentiment seems to have taken a turn overnight. Pre-opening cues suggest that sectors such as banking, auto, and FMCG may see strong buying interest. Lower oil prices also benefit aviation and transport stocks, as fuel costs account for a major chunk of their expenses.

Market analysts believe that if oil prices remain under pressure and foreign institutional investors (FIIs) continue to return, Indian equities may regain upward momentum. They caution, however, that volatility remains high and investors should proceed with a mix of optimism and caution.

The key trigger today will be opening volatility, global cues, and the movement of crude oil futures through the trading session. Investors and traders will keep a close watch on any further geopolitical developments and statements from central banks.