On Monday, Nifty declined 0.4% to 24,080 as higher crude and geopolitical concerns weighed on sentiment. Analysts say Indian equities are likely to maintain a cautious bias as renewed US-Iran tensions and rising crude prices weigh on sentiment. Investors will track India’s Q1FY27 GDP, auto sales, PMI readings and US jobs data this week.
STATE OF THE MARKETS
GIFT Nifty on the NSE IX traded lower by 27.5 points, or 0.11 per cent, at 24,198.5, signaling that Dalal Street was headed for a negative start on Tuesday.
Tech View: A sustained move above 24,200 could trigger a further rise of around 100 points. On the downside, support is placed at 23,990. A sustained break below this level could resume the correction in the market.
India VIX: India VIX, which is a measure of the fear in the markets, rose 5% to settle at 11.19 levels.
Asian bonds slide
Asian bonds followed Treasuries lower as renewed geopolitical tensions drove oil prices higher, fueling inflation concerns and expectations for further monetary tightening.
- S&P 500 futures rose 0.1% as of 9:28 a.m. Tokyo time
- Hang Seng futures fell 0.4%
- Japan’s Topix rose 0.2%
- Australia’s S&P/ASX 200 fell 0.3%
- Euro Stoxx 50 futures fell 1%
US stocks weaken
US stocks weakened on Monday, with Wall Street turning the page on a volatile month as a war-related jump in crude prices revived inflation fears and raised the likelihood of tighter monetary policy.
Yen steadies
The yen steadied near the 160-per-dollar level on Tuesday after U.S. Treasury Secretary Scott Bessent ramped up pressure on the Bank of Japan to hike rates later this month, while currency markets kept a wary watch on renewed attacks in the Middle East.
Oil gains
Oil prices gained on Tuesday as the resumption of fighting between the U.S. and Iran in the Middle East renewed fears of supply disruptions from the world's key crude-producing region.
Gold steadies
Gold prices steadied on Tuesday as traders assessed Middle East tensions and awaited key U.S. labour market data due this week that could shape expectations for Federal Reserve monetary policy.
Read more: Ahead of Market: 10 things that will decide stock market action on Tuesday
Stocks in F&O ban today
1) SAIL
2) LIC Housing Finance
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
FII/DII action
Foreign portfolio investors net sold shares worth Rs 7,985 crore on Monday. DIIs, meanwhile, were net buyers at Rs 4,589 crore.
Rupee
The Indian rupee hit a nearly four-week high against the US dollar on the last day of August, and notched a monthly gain, on support from inflows related to a stock index rejig and central bank intervention.
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