Shares may open lower on negative global cues

GIFT Nifty:

GIFT Nifty July 2025 futures were trading 14.50 points lower in early trade, suggesting a negative opening for the Nifty 50.

Over the weekend, President Trump confirmed that the U.S. conducted airstrikes on Iran's nuclear facilities to halt its alleged nuclear weapon development, sparking sharp backlash from Tehran. Iran's foreign minister warned of everlasting consequences and hinted at all possible retaliatory measures, including potentially blocking the vital Strait of Hormuz. Amid escalating tensions, the White House's stance appeared muddled, with Trump even hinting at regime change. Meanwhile, Israel continued its offensive against Iran, marking the 11th consecutive day of hostilities.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth 7,940.70 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 3,049.88 crore in the Indian equity market on 20 June 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 9100.13 crore in the secondary market during June 2025. This follows their purchase of shares worth Rs 18082.82 crore in May 2024.

Global Markets:

US Dow Jones futures were down 147 points, hinting at a negative start for Wall Street.

Asian markets also slipped on Monday as investor jitters grew following the US airstrikes on three Iranian nuclear sites, which pushed oil prices higher and reignited fears of a wider Middle East conflict. Brent Crude climbed to $78.52 a barrel, continuing its upward trend amid regional tensions.

On the macro front, Japan delivered a pleasant surprise. Its manufacturing sector returned to expansion in June, with the au Jibun PMI rising to 50.4 from May's 49.4. The services sector also saw steady growth, with the index nudging up to 51.5 from 51.0.

Back in the US, two of the three major indices closed lower on Friday. The S&P 500 slipped 0.22%, marking its third straight loss, while the Nasdaq dropped 0.51%. The Dow managed a modest gain of 0.08% as investors weighed geopolitical developments and the Fed's next move on rates.

Domestic Market:

Bulls stormed Dalal Street on Friday, pushing the Nifty 50 index past 25,000, snapping a three-day losing streak. The rally gained momentum in the final hour as Middle East tensions showed signs of cooling and foreign investors returned to Indian equities. The S&P BSE Sensex jumped 1,046.30 points or 1.29% to 82,408.17. The Nifty 50 index jumped 319.15 points or 1.29% to 25,112.40. The Sensex and the Nifty fell 0.53% and 0.61%, respectively, in the past three sessions.

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