Asian Markets Trade Higher Tracking Overnight Rally On Wall Street; Lower Start On D-Street?

Added: 2026-05-31

[00:00:09]Iran's armed forces fire missiles at unidentified targets even as Treasury Secretary Scott Bessant confirms that the US and Iran have reached a draft 60-day ceasefire, though Trump's approval is still awaited. He also reiterates that the president has three conditions for a deal and patience with Iran will not last forever.

[00:00:30]The US markets end higher with the S&P 500 and the Nasdaq closing at new records aided by a rally in tech stocks.

[00:00:35]The Nasdaq gains close to a percent.

[00:00:38]Asian markets continue to trade while the gift nifty though is suggesting a negative start for our own market.

[00:00:45]Oil prices fall as the truce between US and Iran extends. Brent is now hovering around the $93 a barrel mark in what could be its worst month since 2020.

[00:00:54]Gold and silver meanwhile extend gains on news of a likely deal.

[00:01:00]In key results today from the nifty, Asian Paints is expected to report a 5% revenue growth with margins expanding.

[00:01:06]Also, watch out for numbers from Intergation, Glenmark, and NMDC.

[00:01:16]The final trading day of the week and the final trading day of the month as well. Good morning. You're watching Power Breakfast right here on CNBC TV18 in the Mumbai News Center. I am Horus Fataka. Let's first start off with how the Asian markets are trading and continuing from where they left off earlier. And the Asian markets continue to trade in a sea of green powered by most of the AI names. The Taiwanese index continues to gain another 2% in today's trading session. Hangen is up around 610 of a percent. The gains coming from Cosby as well 2% higher on that index yet again and continued to trade with gains for Samsung and for SKHix. both of them who have now crossed the mark of a trillion dollars in market cap and of course the Shanghai composite is the only one that's trading around the flatline because the Nikai in Japan is also trading with gains of close to 2%. So while the rest of Asia continues to do well the gift nifty though is indicating a negative start for our own markets. It's 110 point gap down that we are anticipating but mind you we had a similar sort of a gap down that the gift nifty was anticipating on Wednesday as well and that did not happen. we mostly ended around the flat line and started around the flat line as well. So it'll be interesting to see how market open shapes up and how the final uh trading day goes by especially considering the slew of news developments that are transpiring in West Asia with things changing almost every minute. Let us get you the latest on that. In fact, the US Iran peace negotiations are within reach of an agreement to wind down the war. Treasury Secretary Scott Besson told reporters this, but the President Donald Trump is yet to sign off on it and the White House wants a deal that satisfies several key conditions. Take a look at this report.

[00:02:59]>> That we perhaps have the makings of a deal here. While US Treasury Secretary Scott Bessant was tight-lipped about a possible deal between the US and Iran, sources told Reuters on Thursday that the two sides reached an agreement to extend their ceasefire for another 60 days and lift restrictions on shipping through the straight of Hormuse. But the sources said President Donald Trump had yet to approve it.

[00:03:25]>> Again, it's always a mistake to get out ahead of the president. So, it is all going to be the president's decision.

[00:03:32]Iran's Tasnim news agency, meanwhile, said the text of a potential memorandum of understanding with the US had not yet been finalized or confirmed, citing a source close to the negotiating team.

[00:03:45]According to four sources familiar with the matter, the agreement would allow ship traffic through the straight of Hormuse. While negotiators tackle difficult issues such as Iran's nuclear program, if a new deal is approved, it would amount to the biggest step towards peace since the conflict began on February 28th. News of the possible agreement came after a round of tit fortat attacks between the two countries. The latest such incident since the ceasefire took effect in early April. The new deal would specify unrestricted shipping through the strait and would require the US to also lift its blockade of Iranian ports. The US would also lift some sanctions on Iranian oil sales. The US warned Oman not to get involved in any effort with Iran to impose a toll in the straight of Hormuse. And Trump on Wednesday threatened to bomb the country.

[00:04:36]>> They would like to control it. Nobody's going to control it. It's international waters and Oman will behave just like everybody else. So, we'll have to blow them up.

[00:04:45]>> Treasury Secretary Scott Bessant on Thursday said Oman's ambassador told him there were no plans to impose tolls.

[00:04:52]>> I had a call with the Omani ambassador this morning and he assured me that there were no plans for tolling the straight. As he said, our countries have had 200 years of good relations. He wants to have another 200 more. Oman has not mentioned the idea of joint control of the strait with Iran with which it says it has discussed freedom of navigation. Thrron expressed solidarity with Oman after what it called US officials threats.

[00:05:22]>> Now Treasury Secretary Bessent also said that US President Donald Trump wants freedom of navigation in the state of Hormuz. Listening.

[00:05:31]>> I think the president wanted to punctuate freedom of navigation in the straight. The the teams have been going back and forth and President Trump has made it very clear. He talked about it at the cabinet meeting that he he has several red lines and Iran has to turn over their highlyenriched uranium. They cannot pursue a nuclear weapon and the straight of Hermouth back to your question on energy has to free transit navigation of the seas has to be free and open as it was before. So he's not going to take a bad deal. He's going to make a great deal for the American people.

[00:06:09]>> Meanwhile, in a Fox News interview recorded earlier and set to air over the weekend, President Donald Trump said that any agreement with Iran would depend on securing a good deal.

[00:06:20]a deal that wasn't going to be good for us is the line ultimately because, you know, I'm playing it out and we're going to see and that's what I do. I negotiate, they negotiate, they're very good negotiators. They're crafty. But, uh, in the end, we have all the cards because we've defeated them militarily.

[00:06:36]Look, they have no navy. Every ship, they have 159 ships. Every one of them are at the bottom of the sea. Every single one. We take pictures of them. We have people going down taking pictures of hundreds of ships. Uh, their navy is totally gone, 100%. Their air force is totally gone, 100%. Their military, we've sort of left it alone because we think that their military is somewhat u somewhat moderate.

[00:07:02]>> I take a short break, set you up for today's trading session for our own markets on the other side. Stay tuned.

[00:07:34]Welcome back. Let's set you up for today's trading session and tell you more about the cues that you need to watch out for the stocks that should be on your radar today and of course the setup on the FNO side of things as well and you know as of now the gift nifty is indicating a gap down for our own markets. We are coming back after trading holidays. So there are two days of cues that we need to digest from the global markets which have been fairly positive across both the trading sessions and the other positive is the fact that oil prices are still down. Uh but despite that of course the gift nifty is showing what it is. Rent is now below 93. So which means it's turning out to be the worst month that oil prices would have had since 2020. Uh the bulls will have to take that into account. But of course everything with regards to the US Iran negotiation still remains report based. There is nothing official that is still on the table.

[00:08:24]There is no official announcement that has been made. Of course, as and when that announcement is made, the market will react to that. But there is nothing that needs to be that is not on the table yet. The other part is the fact that as earning season has come to an end, the block deals have returned and there are plenty of them that happened earlier in the week and there are some that are in the offing in today's session as well. So keep that on your radar. For the index, there is no significant change especially because of the fact that the market did very little on Wednesday. 23800 on the downside for on a closing basis that remains to be the most important level. If that happens, we close above 23800. Well, that could be viewed as a positive. On the upside though, 24,000 still continues to remain a struggle and above that in case we do cross that mark today. And then of course, Tuesday's high of 24,88 is the first level to watch on the upside. For the Nifty Bank, well, the setup remains the same as well. A close above the 55,000 mark will be viewed positively. That is the level that the bulls would want to defend. It closed below that on Wednesday. And on the downside, support emerges around that 54700, 54,500 zone. And that's what happened on Wednesday as well. We took support at that 54750 zone and then reverse slightly from those levels as well. For uh to end in the green for the week, the index, the Nifty has to close above 23719. The Nifty Bank has to close above 54055. So most likely we do end the week positively. How much? But that remains to be seen. Of course, there are three stocks that I'll be watching out for today. One is Reliance Industries.

[00:09:48]their annual report was released uh during over the last two days. So that keep an eye out on PG Electroplast the guidance missed for FY26. We'll hear from the management as well uh during the day. So keep that on your radar. And of course as I spoke of the block deal PB fintech is that stock to watch out for. So there are plenty of stock specific reactions at the last day of the earning season this time around as well. So there are plenty of numbers that will be reported during the course of the day. But for now the gift nifty is indicating a gap down. The bulls would hope that this reverses as we go into market open and during the course of the day as well. Over to Pasna now who would be telling you the stocks that you should be watching out for today.

[00:10:24]Pasa good morning.

[00:10:25]>> Good morning Armas. Well certainly the last day of the earnings season and let me start with Ashoke Kleen. Earnings were largely in line to a slight beat.

[00:10:32]Uh revenue is up 19%. This is aided by the strong volumes given by the company AIA. Margin also stands at 14.6% which is at a 3/4er high. Next up is Bat Dynamics. It's been a weak quarter and on folia basis also the performance has been quite weak because of the weak execution this time around the revenue is down 73% aida margins is also has taken a hit of 537 basis points at 16.8%. Next up is Deepak Fertilizer. Net profit is down 50%, revenue is up 13% and margins have also contracted from 18% to 12% on year-on-year basis. Next up is PG Electroplast. Certainly the stock of the day. It's been a weak and a challenging quarter for the company. Revenue is largely in line, but it's a miss in terms of margins and PAT. The company has also missed its FI26 revenue and PAT guidance. Weakness is dragged by the company's RAAC segment. Now net profit is down 55% revenue is down 10% and margins have also taken a hit from 11% down to 7% on year-on-year basis. Next up is Phollex cables. The numbers are better than what the street was estimating. The strong growth is driven by company's electrical cable segment which is why the revenue growth has come in strong double digit at 22%. Aida margins is down 140 bips and pat is up nearly about 17%. Next up is physics VA.

[00:11:56]Net loss has been narrowed down by 76% and the revenue growth for Q4 stands at 51% on year-on-year basis and sequentially it stands at 15% down.

[00:12:08]>> Opasa, thank you for those updates there. Plenty of stocks that will be on your radar today. And lastly, Sarashan joins in with cues from the FNO space.

[00:12:16]Well, Sudaran, good morning. The gift nifty is indicating a gap down, but is the FNO data indicating something similar? So two days of action market will be reacting and if you just exclude FI's actions everything else is not looking bad. So for FI just I can say one line but anyhow look at all the indicators look at the crude it's sharply off highs now Brent is trading in the around $95 per rupee holding on to the levels below 96 and also one more thing India VIX now is at 3 month lows and continues to hold the levels around 15 so everything else is looking positive but due to FYI's actions market is expected to range bound because major actions we are seeing from 23,900 to 24,000 and as you told about Nifty Bank if it closes above 55,000 it would be taken positively and on Friday uh on Wednesday despite we closing in the red nifty bank managed to hold on to the levels above 20 and 50 DMAS that can be taken positively but talking about FI's action again in the index futures they have sold in the stock futures they have sold longs minor addition of 600 on the short side they have added more than 10,000 contexts after reducing consecutively for last few days and this is a sharp addition.

[00:13:33]Now in the options data put side 23,900 and 23,600 were the most active ones. On the call side 24,500 and 24,000 were the most active. So it tells you that if Nifty manages to close comfortably about 24,000 then the door for 24,500 open. So support first support 23,860 next 23,680 and resistance would be 24,000 and 24,500. Some of the stock that will be in focus ptolast it was a weak set of earnings for Q4 vipro ADR was up 18% the stock will be tracked very closely and last one MCX that stock has been seeing fresh shots after big up move that stock had seen over the last few months >> there's a downgrade that has come in from UBS as well for MCX and of course keep an eye out on Vipro ADRs were up 18% sashan thank you for that and a very pertinent line that you highlighted man that's something that we'll be talking about as Well, thank you so much for that update there. We're over to Wall Street then. Uh the S&P 500 and the NASDAQ. It was another day, another record high for those indices. The S&P 500 up 610 of a percent, the Nasdaq gaining nearly a percent. The Dow, well, it ended as on the flat line. It was a very rangebound session for that index.

[00:14:42]CNBC's Julia Bourstein gets us a wrap of all the action on Wall Street.

[00:14:47]US markets were mixed across the major indexes in Thursday trading after a report that US and Iranian negotiators have reached a deal to extend the ceasefire subject to President Trump's approval. The Dow gained 25 points, the S&P 500 was up 43, and the tech heavy Nasdaq added 243 points. As of Thursday, families can now download the Trump Accounts app, but people won't be able to fund the tax deferred accounts until July 4th when the first $1,000 federal contributions begin to eligible accounts. The app was built by BNY Melon and Robin Hood. According to the Treasury Department, families have signed up nearly six million children so far. Treasury Secretary Scott Bessant on Thursday called the program quote the most important government benefit for young people since the GI Bill. The 71.5 billion deal to merge Union Pacific and Norfolk Southern Railroads paused on Thursday. The Federal Surface Transportation Board, which regulates the industry, said it needs more information on a revised merger application, saying there are several aspects that are unclear or underdeveloped. Critics argue the merger would raise prices and reduce competition. The companies argue it would lead to faster shipping and more efficient supply chains. That's what's happening here in the US. Back to you in Mumbai.

[00:16:02]>> Julia Bourstein, thank you for that update there from Wall Street. Here's some opinion from experts on the state of the US economy. the Fed policy expectations and signals from the bond market.

[00:16:12]>> You know, if I took a step back, oil has moved in a way and it's created inflation in a pipeline in a way that financial conditions have to tighten later this year. So, I think the bond market is pricing in a hike now instead of easing. And I think as long as that's what the bond market's pricing, it it is tougher for a lot of groups to rally because most groups need a a dovish Fed.

[00:16:36]I think Kevin Worsh has a very difficult task because the bond market already has its template. Uh he wants to cut rates but shrink the balance sheet. So there's a lot of sterilization taking place there. It's almost as if someone takes over the role of CEO of a company and says we've got a new way of telling our story. investors will be skeptical at first and I think that's why the market will test this Fed >> and I actually don't think is and this is the problem because I was very much in the disinflationary boom camp on February 27th before the US went into Iran. This is now really the economy is doing okay. You've got this inflation shock which is going to play out I think a lot like postcoid where you've got not just energy cost but fertilizer, nitrogen, helium, these other products and it's a supply chain disruption. And so it's not just the demand pull cost push which is actually happening on the data center AI buildout which is pushing energy costs higher but rather just the supply chains the fragility of these supply chains likely to continue to push prices higher. You see it in a variety of survey data. That to me is what the market is missing.

[00:17:46]>> We take a short break get you all the updates from the world of AI on the other side. Stay tuned.

[00:18:19]Welcome back. Back before we go to Rashna on the AI updates, hear out some opinion from Adepika Mundra the director of equity research India at M&G Investments who spoke about this AI trade and she told us that India will be one of the largest users of AI but that valuations still remain a concern listening to what she had to say.

[00:18:37]>> India while we don't have any meaningful play on hardware we're going to be one of the largest users of AI uh and AI compute and for which we're likely to see the development of data centers. So as of now we have just over a gawatt of data centers operational. Uh there is a pipeline of 5 to 10 gawatt to come through in the next 5 to 10 years. This will require a lot of capex from and particularly in the electrical equipment space. So this is what we call the picks and shovels. Uh there are we prefer the shorter cycle plays here being able to repric commodities quite quickly. So you have electrical equipment, gen sets, cables and wires.

[00:19:17]And now let's go across to Rasha for all the updates from the world of AI where she's telling you about another company that's nearing a trillion dollar valuation. Rashna.

[00:19:25]>> Well, the biggest story of the day is definitely Anthropic that has closed its biggest funding round yet, raising $65 billion in a series H at a valuation of about $965 billion. That makes it the most valuable private AI company in the world, surpassing rival OpenAI. Run rate revenue crossed $47 billion earlier this month. And the round was led by Ultima Capital, Dragon, Green Oaks, and Seoa.

[00:19:51]Bloomberg separately reports that Apollo Global Management and Blackstone are working on a $36 billion debt deal to buy Google TPU chips for Anthropic to lease in what could be one of the largest private credit deals in history.

[00:20:07]Then there's Meta that's making two big moves. CEO M Mark Zuckerberg told Meta's annual shareholder meeting that entering cloud computing is quote definitely on the table if the company ends up with excess data center capacity. Meta has raised its 2026 AI capital expenditure guidance to between 125 billion and $145 billion. And at the same time in in the same meeting, Meta confirmed it will test paid AI subscriptions for the first time. Meta 1 Plus will cost $7.99 a month with a premium tier at $19.99.

[00:20:42]Tests begin next month in Singapore, Guatemala, and Bolivia. Then on the other side is Samsung that has shipped the industry's first 12 layer HBM 4E memory samples to major global customers, taking an early lead in next generation AI chip supply. The South Korean chipmaker says its full 2026 HBM capacities already sold out with advanced orders already being taken for 2027. Then there's France Mistl AI that's exploring custom chip design. CEO Arthur Mench told CNBC that custom silicon could lower inference costs meaningfully and the company is not ruling it out. Mistrol has invested 4 billion euros in data centers across France and Sweden. And then there is OpenAI. OpenAI Foundation has now committed $250 million to help workers and economies navigate AI disruption, covering research into labor market impact, near-term worker support, and new models for distributing AI's economic gains. This comes on the heels of what we discussed as AI dividend just a few weeks ago. So, we'll have to see how that one goes. But that's all for now from from the world of AI when it comes to updates, but we'll keep you updated through the day.

[00:21:51]>> Rashna, thank you for those updates there. Another day, another trillion dollar valuation for an AI company. Take your leave on this edition of BA breakfast from me and the team. Thank you so much for watching. Bazar morning call on the other side.