Gift Nifty Points to Firm Open as Asian Markets Rally, Wall Street Ends Higher

Mumbai, Aug 26: Indian equity benchmarks are set to open in the green on Wednesday, tracking a broad-based rally across Asian markets and a strong overnight close on Wall Street. The upbeat global mood comes even as Iran and Oman resumed talks on managing the Strait of Hormuz, a sign of tentative progress even as the broader impasse between Tehran and Washington drags on unresolved. Oil prices extended their slide sharply, offering a fresh tailwind for Indian markets that have spent weeks contending with elevated crude. The combination of firm global cues and a softer energy complex sets up a constructive start for the Sensex and Nifty. 

Asian markets’ strength on Wednesday, led by a near 1 per cent gain in Hong Kong’s Hang Seng, reflects relief that the Hormuz shipping corridor discussions offer a workaround to the standoff even without a full resolution. That relief, layered on top of Wall Street’s gains across every major US index on Tuesday, gives Indian benchmarks a genuinely supportive setup rather than the mixed signals of recent sessions. 

The sharper-than-usual drop in crude, WTI and Brent both down more than 2.5 per cent, is the standout data point. It suggests markets are pricing in a meaningfully lower probability of a full Hormuz shutdown, even as the underlying US-Iran sanctions dispute remains far from settled. 

Still, geopolitical risk hasn’t disappeared. A tanker was struck by an unidentified projectile near the strait’s entrance on Tuesday, and reports of an alleged assassination plot against Trump’s son add a volatile undercurrent that could reassert itself if diplomatic progress stalls. 

Gift Nifty 

Gift Nifty futures for the September 29 series were trading at 24,555.00, up 35.50 points, or 0.14 per cent, as of 8:23 am IST on Wednesday. The uptick points to a firm opening for Indian benchmarks, building on Tuesday’s expiry-day recovery. 

Iran War Update 

The Iran conflict showed tentative signs of de-escalation on Tuesday after Iran and Oman discussed a joint temporary navigational corridor through the Strait of Hormuz and agreed to clear it of mines, with President Trump reiterating that all mines in the strait had already been removed. An oil tanker was nonetheless struck by an unidentified projectile near Oman’s Ash Shishah, underscoring how perilous passage through the waterway remains despite the diplomatic outreach. Separately, the US Secret Service said it was aware of an Iranian state television broadcast discussing a potential plot to assassinate Trump’s son, Barron, adding a fresh layer of tension to the standoff. In a sign Washington sees reduced near-term escalation risk, the US has begun sending personnel back to some Middle East diplomatic missions that were earlier evacuated or downsized. 

Asian Markets on Wednesday Morning 

Asian markets rallied on Wednesday morning, with Hong Kong’s Hang Seng surging 245.26 points, or 0.96 per cent, to lead regional gains, while Japan’s Nikkei 225 added 371.12 points, or 0.56 per cent. Shanghai’s SE Composite rose 0.85 per cent and Malaysia’s FTSE Bursa KLCI gained 0.39 per cent, while Vietnam’s HNX 30 and Pakistan’s KSE 100 also advanced. Australia’s S&P ASX All Ordinaries and Indonesia’s JSX Composite were the notable laggards, slipping into negative territory, while Thailand’s SET Index also eased. The broadly positive regional tone mirrored the relief over easing Hormuz tensions and a strong US session overnight. 

Wall Street 

Wall Street closed higher across the board on Tuesday, with the Dow Jones Industrial Average up 0.30 per cent and the S&P 500 gaining 0.32 per cent. The Nasdaq Composite led the advance, rising 0.66 per cent, while the NYSE Composite and Canada’s S&P/TSX index also ended firmly in positive territory. 

Oil Prices 

Oil prices fell sharply for a second straight session, with WTI crude down 2.62 per cent at $80.20 a barrel and Brent crude off 2.75 per cent at $86.14 a barrel. Murban crude posted an even steeper decline, tumbling nearly 8 per cent, while gasoline and heating oil also eased. The slide reflects markets brushing off the immediate impact of US sanctions on Iran, taking comfort instead from the Iran-Oman talks on keeping the Strait of Hormuz navigable. The pullback offers meaningful relief for oil-importing economies such as India, even as the underlying conflict remains unresolved. 

Indian Markets on Tuesday 

Indian benchmarks recovered from early losses to end higher on Tuesday, with the Sensex rising 286.98 points, or 0.37 per cent, to 77,656.09 and the Nifty 50 gaining 115.50 points, or 0.48 per cent, to 24,334.55. The rally came despite weak global cues and a volatile expiry session, with IT, pharma and PSU banking stocks leading the recovery as the Nifty reclaimed the 24,300 mark. Adani Enterprises, InterGlobe Aviation and Max Healthcare were among the top gainers, even as Cipla, HDFC Life and Hindalco Industries ended among the biggest losers. 

Source

• nseindia.com
• https://www.reuters.com/world/china/iran-oman-discuss-temporary-hormuz-corridor-impasse-with-us-drags-2026-08-25/
• https://www.reuters.com/markets/stocks/asia-pacific/
• https://www.oilprice.com