Brent surges 5% to $107 | Houthis hit Saudi oil pipeline | Nifty to see gap down opening

Core Development: Brent surges 5% to $107 | Houthis hit Saudi oil pipeline | Nifty to see gap down opening

Market & Financial Impact: US markets declined for the fourth consecutive session, with the Nasdaq, Dow and S&P 500 falling around 0.5%. Brent crude surged 5.6% overnight to near $108 a barrel amid reports that Houthi rebels attacked Saudi Arabia’s East-West Oil Pipeline and seized control of Yemen’s port city of Mocha. Rising oil prices pushed US Treasury yields higher, with the 10-year yield jumping 11 basis points to 4.95%, the 2-year yield rising 13 basis points to 4.56%, its highest since July 2024, and the 30-year yield climbing to 5.34%, its highest since June 2007. Chip stocks such as Intel and Micron fell 4-6% on rate-hike concerns, while Apple gained 3.6% following the launch of its first foldable smartphone. US August Producer Price Index inflation rose 0.4% month-on-month and 5.4% year-on-year. Asian markets traded weak, with Gift Nifty indicating a gap-down opening for Indian equities. In India, the market adjusted higher following the CAS mechanism, with the Nifty ending its three-day losing streak. The Nifty saw a CAS adjustment of nearly 100 points, while the Sensex was adjusted by nearly 300 points. At 3:15 pm, the Nifty stood at 23,389 before closing at 23,478, while the Nifty Bank was at 56,262 before closing at 56,472. The Sensex stood at 74,630 at 3:15 pm and closed at 74,903. SEBI Chairman said the determination of the closing price based on CAS for derivatives on expiry day is being reworked, while noting that initial liquidity after the CAS rollout has been an issue and liquidity typically builds over time. FIIs remained net sellers, offloading ₹438.24 crore in equities, while DIIs were net buyers with purchases worth ₹1,025.85 crore. The rupee weakened to close at 95.44 per dollar, compared with Wednesday’s close of 95.11

Actionable Insight: 🟢 Bullish Trigger: Positive business expansion or earnings beat may attract institutional and retail buying.