The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a negative note on Monday, 31 August.
Asian markets mostly fell on Monday, meanwhile, US futures also slipped after the US struck Iranian rocket launchers on Larak Island in the Strait of Hormuz, reviving concerns over a potential escalation in tensions.
On Friday, domestic benchmark indices and Nifty 50 ended higher, breaking their two-session losing streak, supported by positive global market cues and softer crude oil prices. The Sensex gained 331 points, or 0.43%, to close at 77,264.51, while the Nifty 50 advanced 85 points, or 0.35%, to settle at 24,175.65.
“Indian equity markets remained volatile during the week and continued to trade within a broader range-bound structure. The Nifty 50 extended its losing streak to three consecutive weeks. Market sentiment remained cautious amid elevated geopolitical uncertainty, fluctuations in crude oil prices and concerns surrounding U.S. monetary policy outlook. Although the IT sector provided strong support towards the end of the week following robust Nvidia earnings, weakness in several large-cap stocks limited the broader recovery,” said Ponmudi R, CEO – Enrich Money.
Here are key global market cues for Sensex today:
Asian markets
Asia-Pacific traded lower on Monday, led by South Korean equities, after U.S. forces struck two Iranian rocket launchers on Larak Island on Sunday.
South Korea’s benchmark Kospi fell 3.5%, while the small-cap Kosdaq declined 3.8%. In Japan, the Nikkei 225 dropped 2.16%, while the broader Topix slipped 0.95%. Australia’s S&P/ASX 200 also edged down 0.27%.
Gift Nifty today
Gift Nifty was trading around the 24,245 level, down nearly 96.4 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
declined on Sunday night, with Dow Jones Industrial Average futures falling 85 points, or 0.16%. S&P 500 futures slipped 0.2%, while Nasdaq-100 futures also traded lower.
Wall Street is on track to end August on a positive note, with gains largely driven by the technology sector. The Dow has climbed 2.1% this month and is poised for its fifth straight monthly advance. Meanwhile, the S&P 500 and Nasdaq Composite were headed for their first monthly gains since May, rising around 3% and 4%, respectively. Both the S&P 500 and Dow also touched record highs earlier in August.
US-Iran war
US forces on Sunday targeted two launchers on Iran’s Larak Island in the Strait of Hormuz, marking the first reported American strikes in the Gulf nation since late July.
Iran retaliated by striking two US air bases in Jordan, Iranian media reported on Monday, citing the Islamic Revolutionary Guard Corps (IRGC).
Meanwhile, oil prices are headed for modest monthly declines in August after both Brent and WTI crude fell more than 4% last week, marking their first weekly losses in three weeks.
Shipping data showed that the number of visible commodity vessels passing through the Strait of Hormuz fell to around five per day over the weekend. The decline highlights growing caution among shipping companies amid concerns over potential attacks on vessels.
Crude oil prices
Oil prices rose by more than $1 a barrel on Monday after the U.S. carried out an attack on an Iranian island in the Strait of Hormuz, prompting retaliation from Tehran and further escalating the Middle East conflict, which has now entered its sixth month.
Brent crude futures gained $1.08, or 1.23%, to $89.18 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude advanced 92 cents, or 1.10%, to $84.32 a barrel.
Gold rate today
Gold prices remained largely unchanged on Monday after plunging more than 3% in the previous session, as comments from U.S. Federal Reserve Chair Kevin Warsh indicated that further interest rate hikes could be required.
Spot gold was steady at $4,455.29 per ounce, after touching its lowest level since August 19 earlier in the session. Meanwhile, US gold futures for December delivery declined 0.6% to $4,504.90.
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