The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open in red on Tuesday, 1 September.
Asian markets largely traded lower on Tuesday, while US stock futures remained subdued on Monday. Despite the muted sentiment, US equities still closed August with monthly gains.
On Monday, Indian equity markets closed lower amid selling pressure in utility, IT and FMCG stocks. The 30-share BSE Sensex declined 307.24 points, or 0.40%, to settle at 76,957.27. During the session, the index fell as much as 513.19 points, or 0.66%, to touch 76,751.32. The broader NSE Nifty also ended in the red, falling 95.25 points, or 0.39%, to close at 24,080.40.
“Indian equities are likely to maintain a cautious bias as renewed US-Iran tensions and rising crude prices weigh on sentiment. Brent crude rose 3.7% to around US$91/bbl after fresh US strikes on Iran, reversing the recent easing and bringing inflation, the rupee and external balances back into focus. Investors will track India’s Q1FY27 GDP, auto sales, PMI readings and US jobs data this week. On Monday, Nifty 50 declining 0.4% to 24,080 as higher crude and geopolitical concerns weighed on sentiment. The index recovered from the day’s lows but remained in the red,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services.
Here are key global market cues for Sensex today:
Asian markets
Asian markets traded lower on Tuesday as concerns over renewed armed conflict in the Middle East weighed on investor sentiment.
Japan’s Nikkei 225 declined 0.91%, while the broader Topix index remained largely unchanged. South Korea’s Kospi and the small-cap Kosdaq both fell more than 1% in early trade. Meanwhile, Australia’s benchmark S&P/ASX 200 also slipped 0.36%.
Gift Nifty today
Gift Nifty was trading around the 24,212 level, down nearly 33 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
Stock futures were largely muted on Monday night after Wall Street closed lower in the previous session, although the major US indices still ended August with monthly gains.
Dow Jones Industrial Average futures rose 48 points, while S&P 500 futures gained less than 0.1%. Nasdaq-100 futures were little changed.
For August, the S&P 500 advanced 2.6%, while the Nasdaq Composite climbed 3.9%. The Dow Jones Industrial Average gained 1.3%, marking its fifth consecutive monthly increase.
Despite the monthly gains, US markets ended August on a weaker note. The Dow fell more than 370 points in regular trading, while the S&P 500 and Nasdaq Composite also closed lower on the day.
US-Iran war
On Monday, US President Donald Trump warned of further military action against Iran after the two countries exchanged direct attacks for the first time in a month on Sunday, heightening tensions in a conflict that had recently evolved into an economic confrontation.
Meanwhile, the number of visible commodity vessels passing through the Strait of Hormuz fell to just five a day over the weekend, according to shipping data from Kpler.
Diplomatic efforts led by mediators, including Qatar and Oman, to negotiate the reopening of the Strait of Hormuz have so far failed to make meaningful progress. The crucial waterway handled around one-fifth of global oil supplies before the conflict began in late February.
Crude oil prices
Oil prices rose on Tuesday as renewed fighting between the US and Iran in the Middle East heightened concerns over potential supply disruptions from the world’s major crude-producing region.
Brent crude futures climbed 56 cents, or 0.6%, to $91.05 a barrel, while US West Texas Intermediate (WTI) crude advanced 83 cents, or 1%, to $86.59 a barrel.
The gains followed a strong rally in the previous session, when Brent settled 2.7% higher after briefly hitting its highest level since August 25. WTI also gained 2.8% and touched its highest level since August 21.
Gold rate today
Gold prices remained largely steady on Tuesday as investors weighed ongoing tensions in the Middle East and awaited key US labour market data due later this week. The upcoming data is expected to provide cues on the Federal Reserve’s monetary policy outlook.
Spot gold was little changed at $4,454.68 per ounce, after falling to its lowest level since August 19 in the previous session. Meanwhile, US gold futures for December delivery gained 0.5% to $4,503.70.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
