Gift Nifty Signals Flat Start for Markets as Iran Tensions, Oil Rebound Weigh On Sentiment

Mumbai, July 29: Indian equity benchmarks are headed for a flat opening on Wednesday, with a slight negative bias, as trading cues from Gift Nifty pointed to a cautious start. Gift Nifty futures for the 25-August series were trading at 24,243.00, down 58.00 points, or 0.24 per cent, as of 08:14 IST, signalling that the Nifty 50 could open largely rangebound in early trade. The muted tone comes as domestic investors remain watchful rather than outright optimistic heading into Wednesday’s session. 

Iran War 

Much of that watchfulness traces back to the fragile stand-off between the United States and Iran, which has kept global markets on edge through the week. The US military said on Tuesday it intercepted multiple ballistic missiles launched by Iran towards American forces in the Middle East, describing the action as an attempted surprise attack. Iran’s Revolutionary Guards said the missiles were aimed at a US air base and a Central Command facility in Jordan, framing the strikes as retaliation for earlier US actions against Iranian interests. The Pentagon later confirmed that US and Saudi Arabian aircraft had carried out joint strikes in eastern Iraq, targeting sites linked to Iran-backed militant groups accused of directing attacks on American forces and Saudi energy infrastructure, and warned Tehran and its proxies to halt further attacks. 

The exchange comes despite President Donald Trump’s decision over the weekend to call off a two-week American bombing campaign against Iran. Trump told Fox News on Tuesday that “good talks” were under way with Tehran, though he warned strikes could resume if negotiations did not deliver. Iran has denied seeking to restart talks with Washington, leaving investors with little clarity on whether the pause will hold. The broader conflict, which began on February 28 when the US and Israel struck Iran, has repeatedly disrupted crude flows through the Strait of Hormuz. 

Asian Markets 

Despite the uncertainty, global equities have largely shrugged off the latest flare-up. Asian markets were mixed to higher on Wednesday morning, with Hong Kong’s Hang Seng leading gains, up over 1.6 per cent, while Australia’s All Ordinaries and Malaysia’s KLCI also advanced. Japan’s Nikkei 225 and Thailand’s SET index bucked the trend, slipping on the day, while Pakistan’s KSE 100 and Indonesia’s Jakarta Composite also traded lower. The picture was more uniformly upbeat on Wall Street overnight, where the Dow Jones Industrial Average jumped over 1 per cent, the S&P 500 and NYSE Composite both advanced, and Canada’s S&P/TSX Composite also closed higher, even as the Nasdaq Composite slipped marginally on the day. 

Oil Prices 

Crude oil prices added to the improving global backdrop, rebounding by more than two dollars a barrel in early trade on Wednesday after shrinking US crude inventories offset the previous session’s sharp losses. Brent futures rose 3.2 per cent to 86.80 dollars a barrel, while US West Texas Intermediate crude climbed 3.4 per cent to 81.95 dollars, according to Reuters. US crude stockpiles fell by roughly 3.3 million barrels in the week ended July 24, even as gasoline and distillate inventories grew, market sources said, citing American Petroleum Institute data. Prices had slumped nearly 5 per cent on Tuesday to a two-week low on hopes that the US-Iran pause would hold, but found support again after OPEC+ signalled it would likely pause output increases for three months starting in October. Separately, Oman has reportedly presented Iran with a plan to manage traffic through the Strait of Hormuz, including voluntary fees for passage, a proposal backed by Gulf states aimed at easing the disruption to trade through the vital waterway. 

Indian Markets on Tuesday 

Back home, Tuesday’s session saw the Sensex and Nifty close largely flat as investors stayed cautious ahead of Wednesday’s global cues. The Sensex slipped 69.86 points, or 0.09 per cent, to end at 76,765.92, while the Nifty 50 eased 10.60 points, or 0.04 per cent, to settle at 23,985.35. Market breadth stayed weak through the session, with 1,539 shares advancing against 2,543 declines and 155 stocks unchanged, even as strong buying in information technology stocks helped offset broader selling pressure. With Gift Nifty signalling a similarly subdued start on Wednesday, investors are likely to stay focused on the durability of the US-Iran pause, crude oil trends, and ongoing quarterly earnings for near-term direction. 

Source

• nseindia.com