Gift Nifty Signals Green Open for Indian Markets Despite Unresolved Iran Standoff

Mumbai, Aug 19: Indian markets are set to open in the green on Wednesday, snapping a six-session losing streak, even as the Iran-US standoff shows no signs of resolution. GIFT Nifty futures were trading higher in early hours, offering a modest but welcome reprieve after Tuesday’s broad-based sell-off driven by crude oil, geopolitical risk and rising global bond yields. 

The uptick comes against a genuinely mixed geopolitical backdrop. President Trump declared on Tuesday that no talks were taking place with Iran and insisted the Strait of Hormuz remained open, directly contradicting Tehran’s position that the waterway stays shut. Yet Iran struck a notably less combative tone through a separate channel, with a senior adviser to its supreme leader saying the country remains open to dialogue, even as it refuses to equate negotiation with surrender. That split messaging, hardline on the strait, open on diplomacy, is likely to keep markets guessing through Wednesday’s session. 

GIFT Nifty Figures 

GIFT Nifty futures for the August 25 expiry were trading at 24,213.50, up 26 points or 0.11%, as of 7:51 am IST on Wednesday. The move suggests a modest positive start for the Nifty 50, which had closed Tuesday’s session under pressure amid the broader risk-off mood. The uptick, while modest, marks a potential break from the index’s six-session losing streak that has weighed on sentiment through the week. 

Iran War Update 

Trump said on Tuesday that no talks or conversations were scheduled with Iran and insisted the naval blockade remained in full force even as the Strait of Hormuz stayed open and operational. Iran’s top negotiator, Mohammad Baqer Qalibaf, countered that the strait would remain shut until Washington met the conditions of the June interim deal, including ending the port blockade and lifting oil sanctions. Adding to the uncertainty, the UAE’s Defense Ministry reported detecting two ballistic missiles launched from Iran targeting maritime traffic, while the UK Maritime Trade Operations flagged a vessel struck by an unknown projectile in the strait, causing a crew casualty. Even so, Mohammad Mokhber, an adviser to Iran’s supreme leader, said the country remains open to dialogue with the US while stressing that military pressure and sanctions would not break its resolve. 

Asian Markets on Wednesday Morning 

Asian markets were largely trading lower on Wednesday morning, led by a sharp 2.73% fall in Japan’s Nikkei 225 to 65,619.85, its steepest decline among regional peers. Hong Kong’s Hang Seng slipped 0.36% to 25,378.54, while China’s Shanghai Composite dropped 1.45% and Pakistan’s KSE 100 fell a sharp 1.41%. Bucking the trend, Indonesia’s Jakarta Composite rose 0.75% and Malaysia’s FTSE Bursa KLCI gained 0.27%, pointing to a mixed regional picture rather than uniform risk-off selling. The divergence suggests investors are differentiating between markets more exposed to oil-price and yield sensitivity and those driven by domestic factors. 

US Markets on Tuesday 

Wall Street closed lower across the board on Tuesday, with the Nasdaq Composite leading declines, down 1.33% to 26,289.71, as tech stocks bore the brunt of the sell-off. The S&P 500 fell 0.69% to 7,691.76 and the Dow Jones Industrial Average slipped 0.22% to 53,343.40, while the broader NYSE Composite eased 0.36%. The across-the-board declines reflected growing investor unease over the stalled Iran talks, rising oil prices and multi-decade-high borrowing costs. 

Oil Prices 

Crude oil prices extended their gains into Wednesday morning, with WTI crude trading at $85.74 a barrel, up 0.94%, and Brent crude at $91.80, up 0.86%, as of 8:05 AM IST. Both benchmarks have stayed firm since the ceasefire’s collapse, with Brent settling just over $91 a barrel on Tuesday after adding 20 cents through the session. The persistent upward pressure reflects continued uncertainty over Strait of Hormuz shipping activity, even as Trump insists the passage remains open. 

Sensex, Nifty Tuesday Close 

Indian benchmark indices extended their losses for a sixth straight session on Tuesday, with the Sensex declining 0.63% and the Nifty 50 falling 0.55%, as rising crude oil prices, US-Iran tensions and elevated US bond yields kept investors on edge. The sell-off was broad-based, with 2,258 stocks declining against 1,860 advancing on the NSE, while IT stocks led the drag as the Nifty IT index tumbled 1.9% on losses in Infosys, HCL Technologies and Wipro. Realty, FMCG and metal stocks also ended lower, falling 1.4%, 0.7% and 0.6% respectively, reflecting broad-based caution across sectors. Auto, media and oil & gas stocks were the notable exceptions, closing higher even as the wider market stayed under pressure. 

Source

• nseindia.com