Gift Nifty Points to Flat-to-Firm Open for Sensex, Nifty on Tuesday

Mumbai, Aug 31: Gift Nifty futures pointed to a largely steady, mildly positive opening for Indian equity benchmarks on Tuesday, September 1, as a volatile session on the contract reflected the situation between Iran and the US, and sharply higher oil prices. The near-month Gift Nifty contract expiring September 29 was last at 24,237.50, up 11.50 points, or 0.05 per cent on the day, while the far-month October 27 contract was flat at 24,340.00. The swings through Monday’s session suggest investors are still working out whether the weekend’s escalation in the Middle East warrants a bigger repricing of risk heading into Tuesday. 

Gift Nifty Intraday Analysis 

The near-month Gift Nifty future opened at 24,264.5 and slid through the morning to an intraday low of 24,134, before staging a sharp recovery past noon to touch a high of 24,297 and settling near 24,235.5, up 9.5 points, or 0.04 per cent, on the day. The V-shaped move, with the contract giving up over 130 points before clawing back almost all of it, suggests two-way volatility rather than a one-directional bias, with support near 24,134 and resistance close to the day’s high of 24,297. 

Oil Prices 

Oil prices surged sharply, with WTI crude jumping 3.59 per cent to $86.39 a barrel and Brent crude climbing 3.41 per cent to $91.10, extending the previous session’s gains. Murban crude led the advance, up 4.04 per cent to $95.75, underscoring the outsized impact on Gulf-linked grades. The rally followed the weekend’s exchange of fire between US and Iranian forces, which revived fears over shipping disruptions through the Strait of Hormuz. For India, a major oil importer, the sharp rise in crude adds a fresh inflationary risk just as markets weigh the broader geopolitical fallout. 

Iran War 

US forces struck two rocket launchers on Iran’s Larak Island on Sunday, the first known American military strikes on Iran since late July, prompting Tehran to retaliate with a missile attack on two US bases in Jordan. Iran’s Revolutionary Guards vowed further retaliation after the strikes, even as Jordan’s armed forces said they intercepted most of the incoming missiles. US Central Command described its action as a limited, precise strike on Iranian minelaying forces posing an imminent threat in the Strait of Hormuz, while Washington separately pressed ahead with new economic sanctions, with Treasury Secretary Scott Bessent signalling fresh weekly measures targeting banks with Iranian links. The renewed hostilities mark a fresh escalation in the six-month-old conflict, even as visible tanker traffic through the strait fell to just five vessels a day over the weekend. 

Asian Markets 

Asian markets were mixed on Monday, with no clear regional trend emerging from the Iran-US flare-up. Japan’s Nikkei 225 slipped 0.14 per cent to 66,311.93 and Hong Kong’s Hang Seng eased 0.07 per cent to 25,566.99, while Malaysia’s KLCI was the region’s weakest performer, down 0.91 per cent, and Australia’s S&P ASX All Ordinaries fell 0.25 per cent to 9,271.40. On the other side, China’s Shanghai Composite jumped 0.86 per cent, Thailand’s SET rose 0.44 per cent, Indonesia’s JSX Composite added 0.11 per cent, and Pakistan’s KSE 100 gained 0.21 per cent, leaving the broader region without a consistent directional signal ahead of Tuesday’s Indian open. 

Outlook 

With Gift Nifty recovering most of its intraday losses to end little changed, Indian benchmarks look set for a flat-to-mildly-positive start when trading resumes at 9:15 am on Tuesday. Sharply higher oil prices and the Iran-US flare-up remain the key swing factors, even as the contract’s resilience suggests investors are not yet pricing in a sustained escalation. Traders will watch for further headlines from the Strait of Hormuz and any fresh sanctions announcements through the day, alongside how Asian markets extend Monday’s mixed cues into Tuesday’s session. 

Source

• nseix.com
• Reuters
• OilPrice.com
• https://www.reuters.com/world/middle-east/us-iran-exchange-fire-flare-up-bessent-signals-more-sanctions-2026-08-31/