Gift Nifty Points to Positive-to-Cautious Start for Indian Markets as Nvidia Delivers, Iran-Oman Talks Drag On

Mumbai, Aug 27: Indian equity benchmarks look set for a positive-to-cautious opening on Thursday, as Nvidia’s stronger-than-expected earnings meet lingering uncertainty over the Strait of Hormuz and a marginally less confrontational U.S. posture on Iran. Nvidia (NASDAQ: NVDA) beat estimates on both revenue and earnings, while Iran and Oman said they were still finalising the details of a Hormuz accord, and Washington signalled it does not plan fresh strikes for now. 

Nvidia’s $96.22 billion quarterly revenue, against a $92.17 billion estimate, and its bullish outlook for the next fiscal year triggered a four per cent jump in the stock, a signal likely to lift sentiment toward India’s IT and AI-linked names. Oil held its recent slide, with Brent near $87 a barrel and WTI near $81.56, as the still-unfinalised Iran-Oman talks and U.S. Secretary of State Marco Rubio’s comments that no new strikes were planned eased some of the geopolitical risk premium. 

That mix, a strong Nvidia print, a cooling oil market and a marginally calmer Iran narrative, has left Gift Nifty holding only a modest gain, pointing to a guarded rather than emphatic start for the Sensex and Nifty 50 at Thursday’s 9:15 am bell. 

Gift Nifty Figures 

The Gift Nifty futures contract expiring September 29 was last at 24,403.50, up 7.50 points, or 0.03 per cent, as of 6:08 pm IST on Wednesday, a modest premium over the Nifty 50’s Wednesday close of 24,207.75. The narrow move signals a tentative rather than emphatic start for Indian benchmarks, with traders likely to look for further cues from Thursday’s Asian session before committing to directional bets. 

Iran War 

Iran and Oman are still finalising the details of an agreement to manage the Strait of Hormuz, a senior Iranian source told Reuters, even after Iran’s Revolutionary Guards said the two countries had agreed on how to share the waterway and its revenues. Tehran has maintained that the strait will not fully reopen unless Washington lifts its blockade on Iranian ports, pays compensation and removes sanctions, conditions tied to a ceasefire framework struck in June that later unravelled. U.S. Secretary of State Marco Rubio told allies that Washington does not expect to launch new strikes against Iran for now and will instead rely on other forms of pressure, Axios reported. Attacks on shipping through the strait continue even as active hostilities between the U.S. and Iran have largely subsided, keeping passage through the waterway perilous. 

Oil Prices 

Brent crude was trading near $87.05 a barrel, down about 0.9 per cent, while U.S. West Texas Intermediate slipped 0.84 per cent to $81.56, extending its recent retreat. Prices have eased as Iran and Oman edge toward a framework for the Strait of Hormuz, though the still-unfinalised nature of that accord and continuing attacks on shipping have kept a floor under prices. Murban crude, the Abu Dhabi benchmark, bucked the trend, rising 0.35 per cent to $93.77, a reminder that not every Gulf grade has moved in lockstep with Brent and WTI. 

Asian Markets on Thursday Morning 

Asian markets were mixed in early Thursday trade, digesting Nvidia’s stronger-than-expected results alongside the still-unresolved Iran-Oman talks. Japan’s Nikkei 225 slipped 0.15 per cent to 66,164.19, while Hong Kong’s Hang Seng eased 0.41 per cent to 25,547.19 and Indonesia’s JSX Composite fell a sharper 1.48 per cent to 6,405.69. China’s Shanghai Composite bucked the softer tone, edging up 0.12 per cent to 3,917.19, while Pakistan’s KSE 100 gained 0.23 per cent to 177,370.71. Malaysia’s FTSE Bursa Malaysia KLCI and Thailand’s SET index also posted modest gains, pointing to a broadly directionless start for the region. 

How US Markets Ended on Wednesday 

U.S. stocks ended lower on Wednesday ahead of Nvidia’s earnings release after the bell, with the Dow Jones Industrial Average down 113.52 points, or 0.21 per cent, at 53,463.88. The S&P 500 slipped 1.58 points, or 0.02 per cent, to 7,675.70, while the Nasdaq Composite eased 21.10 points, or 0.08 per cent, to 26,130.20. Broader gauges also finished lower, with the NYSE Composite down 0.11 per cent and Canada’s S&P/TSX Composite falling 0.39 per cent. 

How Indian Markets Ended on Wednesday 

Indian benchmarks ended lower on Wednesday, with the Sensex falling 183.15 points, or 0.24 per cent, to 77,472.94 and the Nifty 50 declining 126.80 points, or 0.52 per cent, to 24,207.75, as selling in IT and infrastructure stocks outweighed gains in metals and banks. The Nifty IT and Infrastructure indices each fell around one per cent, dragged by Infosys, Tech Mahindra, Power Grid and Bharti Airtel, while the Nifty Metal and private bank indices rose about one per cent on strength in JSW Steel, Kotak Mahindra Bank and Axis Bank. Market breadth stayed positive, with 2,263 stocks advancing against 1,881 declines on the NSE, and the Nifty Smallcap index up 0.8 per cent even as the headline indices slipped. 

Source

•  nseindia.com
• OilPrice.com