Nifty Flatlines As Sensex Gains At Pre-Open Pointing To Mixed Start For Benchmarks Amid Positive Global Cues

Mumbai, August 26: Indian benchmarks diverged at pre open signalling a mixed start as oil declined for a third day on Middle East optimism and global equities advanced. 

Nifty 50 edged down 0.01% and Sensex advanced 0.2% at pre open.  

Domestic equities ended higher in the previous session as easing crude prices provided some relief, although trading remained volatile as investors adjusted to the first monthly Nifty 50 derivatives expiry conducted under the new closing-auction framework.  

Foreign portfolio investors continued to support the market, remaining net buyers of Indian equities for a second straight session. FPIs purchased shares worth ₹1,594 crore on Tuesday, while domestic institutional investors bought equities worth ₹230 crore, according to provisional NSE data.  

Spotlight will fall on Cipla as the U.S. FDA inspected its Pithampur plant and issued seven observations in a Form 483.  

The Delhi High Court put on hold a food safety regulator’s order preventing Dabur from selling products with “100%” claims.  

Honasa Consumer scrapped its proposed acquisition of Fluence Pharma after certain conditions were not met. 

Asian Markets Rise Ahead Of Nvidia Results 

Asian equities traded higher in early deals, with investors positioning ahead of Nvidia’s quarterly results, which are expected to provide fresh signals on the strength of the global artificial intelligence investment cycle. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.96%, while Japan’s Nikkei advanced 0.56% and South Korea’s KOSPI climbed 1.77%. Nasdaq futures were marginally lower, down 0.19%, pointing to some caution after the strong gains on Wall Street in the previous session. 

Nvidia’s results are likely to be closely watched across global markets, with investors looking beyond the chipmaker’s headline numbers to its outlook and indications on whether robust AI spending can continue to justify elevated technology valuations. 

Wall Street Recovers As Tech Stocks Rebound 

US stocks ended higher on Tuesday, recovering from the technology-led selloff in the previous session. 

The Dow Jones Industrial Average gained 0.30%, while the S&P 500 rose 0.32%. The Nasdaq Composite outperformed, advancing 0.66%, as technology and semiconductor stocks recovered. 

Nvidia shares gained 2.2%, while Meta Platforms rose nearly 2% and Micron Technology climbed 2.5%. The broader semiconductor index advanced 1.4%, while AMD jumped 4.9% after an analyst upgrade. 

The recovery in US technology stocks could provide support to Indian IT shares at the open, although investors may remain cautious ahead of Nvidia’s results. 

Oil Extends Decline On Hormuz Reopening Hopes 

Crude oil prices provided another supportive signal for global markets, with Brent crude falling for a third consecutive session. Prices declined more than 2% to around $86.3 a barrel after Iran said it had resumed discussions with Oman over the management of the Strait of Hormuz. 

Iran and Oman discussed a temporary navigational corridor through the strategic waterway and agreed to clear mines, raising hopes of a gradual easing in supply disruption risks. 

The Strait of Hormuz is a critical artery for global energy supplies, carrying roughly a fifth of the world’s traded oil. Any signs of a reopening could therefore ease fears of prolonged supply disruptions and keep a lid on crude prices. 

For India, lower oil prices are particularly favourable. A sustained decline in crude could ease pressure on the country’s import bill, inflation and corporate input costs, while also providing some relief to the rupee. 

US Yields Ease, Supporting Risk Appetite 

US Treasury yields also moved lower, adding to the supportive global backdrop. The 10-year Treasury yield fell to 4.634% after declining 6.5 basis points on Tuesday. 

Lower bond yields can support equity valuations, particularly for growth and technology stocks, by reducing the relative attractiveness of fixed-income assets and easing discount-rate pressures. 

However, investors remain focused on upcoming US inflation data and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium for clues on the future direction of US monetary policy. 

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