Indian Markets Likely To Open Higher As Oil Prices Slide, US Futures Gain; Asian Stocks Fall

Mumbai, August 3: Indian equity benchmarks are likely to open higher on Monday, tracking positive cues from US stock futures and a sharp decline in crude oil prices, although weakness across Asian markets could cap gains. Investors will also keep an eye on geopolitical developments in West Asia, currency movements and the Reserve Bank of India’s upcoming monetary policy decision. 

Asian Markets Trade Lower 

Asian equities traded mostly lower in early deals, with Japan’s Nikkei 225 (down 1.7%) and South Korea’s KOSPI (down 4.2%) coming under pressure as investors remained cautious following a volatile July and continued to reassess elevated valuations in technology and artificial intelligence-related stocks. 

Hong Kong’s Hang Seng edged up 0.15%. The broad weakness in Asian markets could weigh on domestic equities at the open, although other global cues remained supportive. 

US Futures Point To Positive Start 

US stock futures traded higher, pointing to a positive opening for Wall Street. S&P 500 futures gained around 0.5%, while Nasdaq 100 futures rose about 0.9%, offering some relief to global risk sentiment. 

The gains in US futures came despite continued caution around technology valuations and volatility in global equity markets. Investors are also awaiting fresh economic data and corporate developments for further clues. 

Oil Prices Slide 

Crude oil prices fell sharply, with Brent crude futures declining more than 5% to around $83 a barrel after signs of a possible diplomatic engagement between the US and Iran raised hopes of easing tensions in West Asia. 

The fall in crude prices is a positive development for India, one of the world’s largest oil importers. Lower oil prices could help reduce pressure on the country’s import bill and inflation while supporting the margins of oil-consuming sectors. 

What It Means For Indian Markets 

For Indian equities, the combination of falling crude prices, gains in US futures and recent foreign fund buying could support a positive start to Monday’s session. 

However, weakness in Asian markets, continued volatility in global technology stocks and geopolitical uncertainty could limit the upside. Traders are likely to remain cautious ahead of the RBI’s monetary policy meeting later this week, with the central bank expected to maintain its current policy stance. 

Overall, the Sensex and Nifty 50 could see a positive opening on Monday, aided by softer crude oil prices and firm US futures. However, the mixed global cues suggest that the domestic benchmarks could witness volatility, with investors likely to track developments in West Asia, global technology stocks and the RBI policy outlook for further direction. 

Source

• Exchanges