Gift Nifty Signals Muted Open for Indian Markets on Tuesday

Mumbai, Aug 18: Indian equity markets are bracing for a subdued start on Tuesday, with Gift Nifty futures pointing to a flat-to-weak open as global risk appetite sours overnight. The muted signal comes on the back of an escalating geopolitical standoff in the Middle East, after Iran said it would shift to a “fully offensive” military posture, and Washington confirmed it would not extend a temporary ceasefire that has kept a fragile peace since June. The breakdown effectively puts the region back on a war footing at a moment when Indian markets are already digesting a soft session from the previous day. 

The timing could hardly be worse for Dalal Street. Weak Asian markets in Tuesday’s early trade, a sharply lower Wall Street close on Monday, and oil prices creeping higher on renewed Strait of Hormuz risk are combining into a familiar but uncomfortable setup for India — a net oil importer that tends to feel geopolitical shocks in the Gulf almost immediately through crude and the rupee. Investors heading into Tuesday’s session will be watching all three levers closely: how far Iran escalates, how Asian peers open, and whether Brent’s climb toward $91 a barrel starts to bite into inflation and import-bill assumptions.

Gift Nifty Figures 

Gift Nifty futures for the 25-August-2026 expiry were trading at 24,291.50 as of 8:15 am IST on Tuesday, down 6.00 points, or 0.02%, signalling a largely flat, marginally weak start for Indian benchmark indices ahead of the official opening bell. 

Iran War 

Iran said it will move to a “fully offensive” military posture after peace talks with the United States stalled ahead of a Monday deadline to finalise a permanent end to the war. Washington confirmed it would not extend the interim ceasefire that had been in place since June, effectively reopening a conflict that had appeared to be de-escalating. Tehran has warned it is prepared to act against what it calls a US naval blockade of the Strait of Hormuz, a waterway critical to global oil flows, while also pursuing back-channel talks involving the Islamic Revolutionary Guard Corps. Thousands have already been killed in the conflict, and Brent crude has surged as much as 75% above pre-war levels since fighting began in February. 

Asian Markets on Tuesday Morning 

Asian markets were broadly weaker on Tuesday morning, tracking Monday’s soft close on Wall Street. Japan’s Nikkei 225 led the declines, falling over 1.6%, while Hong Kong’s Hang Seng and China’s Shanghai Composite also slipped into negative territory. Malaysia’s KLCI and Vietnam’s HNX 30 posted modest losses as well, extending the cautious regional mood. A few bright spots emerged, with Indonesia’s JSX Composite, Pakistan’s KSE 100 and Thailand’s SET Index trading higher, showing the weakness was not uniform across the region. 

US Markets on Monday 

Wall Street closed lower across the board on Monday, with the Dow Jones Industrial Average falling 272.63 points, or 0.51%, to 53,459.78. The S&P 500 dropped 0.52% to 7,745.06, while the Nasdaq Composite slipped 0.32% to 26,644.91. Broader indices including the NYSE Composite and Mexico’s S&P/BMV IPC also ended in the red, reflecting a broadly cautious risk tone heading into Tuesday’s Asian and Indian sessions. 

Oil Prices 

Oil prices firmed on Tuesday, with WTI Crude up 0.63% to $85.03 a barrel and Brent Crude rising 0.45% to $91.28. Murban Crude was the standout mover, jumping 9.26% to $97.70, underscoring the pressure building across benchmarks amid renewed Strait of Hormuz tensions. Natural gas, gasoline and heating oil also edged higher, pointing to broad-based strength across the energy complex. 

Sensex and Nifty: Monday’s Close 

Indian benchmark indices extended their cautious tone from the previous week on Monday, with the Sensex falling 281.09 points, or 0.36%, to close at 77,728.16, while the Nifty dropped 78.35 points, or 0.32%, to end at 24,287.65. IT stocks were the biggest drag, with the Nifty IT index sliding nearly 2% as Infosys, HCL Technologies and TCS led the losses. Metal and realty stocks bucked the trend, with the Nifty Metal index gaining 1.2% on the back of strength in Hindalco and Tata Steel. Market breadth stayed weak throughout the session, with 2,213 shares declining against 2,025 advancing on the NSE.

Source

• nseindia.com