The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to remain range-bound with a cautious bias on Monday, 17 August.
Asian markets opened mixed on Monday, meanwhile, US stock futures were little unchanged.
On Friday, benchmark indices, the Sensex and Nifty 50, ended lower on Friday, 14 August, snapping their two-week winning streak. Investor sentiment remained cautious amid uncertainty over a possible US-Iran peace deal, volatility in crude oil prices, rising bond yields, and growing concerns about a potential revival in inflation. The Sensex declined 71 points, or 0.09%, to close at 78,009.25, while the Nifty 50 shed 30 points, or 0.12%, to settle at 24,366.
“Indian equity markets ended lower during the week, snapping a two-week winning streak as rising crude oil prices and renewed geopolitical tensions dampened investor sentiment. Although first-quarter earnings remained broadly resilient and selective sectors continued to attract buying interest, the market struggled to sustain momentum amid profit-taking at higher levels and mounting uncertainty surrounding the US–Iran standoff and the Strait of Hormuz.
The Nifty traded largely within a narrow range for much of the week, reflecting a more selective approach by investors rather than broad-based risk-taking. Gains proved difficult to sustain as persistent geopolitical uncertainty overshadowed supportive domestic fundamentals, leaving the benchmark to close the week lower after two consecutive weeks of advances,” said Ponmudi R, CEO – Enrich Money.
Here are key global market cues for Sensex today:
Asian markets
Asian equities were largely subdued on Monday as investors remained cautious about oil prices, which posted strong gains last week amid the absence of progress towards ending the Iran conflict, keeping concerns over inflation elevated.
MSCI’s broadest index of Asia-Pacific shares excluding Japan was little changed, while Japan’s Nikkei rose 0.4%. Australia’s resource-heavy stocks declined 0.3%.
South Korea’s stock markets remain closed on Monday due to a public holiday.
Gift Nifty today
Gift Nifty was trading around the 24,405.50 level, down nearly 44.10 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock futures were largely flat on Sunday evening, as the S&P 500 headed into a fourth week of gains despite closing lower on Friday.
Dow Jones Industrial Average futures edged up 11 points, or 0.02%, while S&P 500 and Nasdaq 100 futures advanced 0.1% and 0.2%, respectively.
Wall Street has now recorded three straight weekly gains for the S&P 500, which reached fresh record highs last week, supported by a strong earnings season that has lifted investor confidence. Equities have continued to advance despite persistent conflict in the Middle East and growing concerns surrounding the artificial intelligence-driven market rally.
Japan’s GDP growth
Japan’s economy grew at an annualized rate of 1.1% in the second quarter, falling short of the 2% growth expected by economists, as weaker domestic demand offset robust exports.
The expansion slowed from the 2.1% annualized growth recorded in the previous quarter.
On a year-on-year basis, Japan’s GDP increased 0.7% in the second quarter, accelerating from 0.5% growth in the first quarter.
The quarter marked the first full three-month period to reflect the impact of the Iran war, which has pushed up energy costs for both businesses and households.
Crude oil prices
Oil prices held steady as renewed clashes in Lebanon and attacks on ships in the Strait of Hormuz clouded prospects for a ceasefire agreement to end the US-Iran conflict.
Brent crude traded largely unchanged below $89 a barrel after climbing 6% last week, while West Texas Intermediate hovered around $82. Oil prices have surged more than 40% so far this year, as the US war with Iran enters its sixth month.
US-Iran war
President Donald Trump has indicated that his administration intends to impose severe economic pressure on Iran, adding that he was not concerned about whether the conflict was resolved before the November midterm elections. Treasury Secretary Scott Bessent said additional sanctions could be announced as early as this week.
At the same time, Iran and Oman appeared to be moving closer to an understanding over the management of the Strait of Hormuz. However, the US has not been involved in the discussions and is unlikely to accept any arrangement that fails to guarantee the restoration of free passage through the key waterway, which previously carried around one-fifth of the world’s daily oil and liquefied natural gas supplies.
Gold rate today
Gold prices edged higher in early Asian trading on Monday, helped by a weaker U.S. dollar and recent economic data that reduced expectations of a U.S. interest rate hike next month.
Spot gold gained 0.3% to $4,388.62 per ounce, while US gold futures for December delivery rose 0.2% to $4,444.30.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
