Summary: Soaring crude oil prices due to tensions between the US and Iran are likely to guide markets on Friday. On Thursday, Tehran shot down a US military drone flying over Strait of Hormuz, souring relations. Moreover, Goods and Services Tax (GST) council meeting, foreign fund flow, rupee value against the US dollar and global cues could affect investors’ sentiment. Additionally, markets may also react to the Reserve Bank of India’s (RBI) comments on slowing economic growth despite tepid inflation revealed in the minutes of its June policy meeting, which was released post-market hours on Thursday. On Thursday, the benchmark S&P BSE Sensex ended at 39,601, with a gain of 489 points while the Nifty50 closed at 11,831, rising 140 points. The rupee ended at 69.44, compared to the previous day’s close of 69.7. GLOBAL CUES Asian stocks struggled on Friday as anxiety over Sino-US trade negotiations clouded the investor mood in the region. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent while Japan’s Nikkei was flat. On Wall Street, indices ended higher on a possible rate cut next month. The Dow Jones added 249 points to settle at 26,753 while the Nasdaq gained 64 points to close at 8,051. The S&P500 rose 28 points to end at a record high of 2,954. In the commodities market, oil prices rose on Friday. Brent crude was up 0.6 per cent at $64.84 a barrel by 6 am.
