The Indian stock market today is expected to witness a gap-down opening as weak global cues and escalating US-Iran tensions dampened investor sentiment. GIFT Nifty futures at GIFT City, Gandhinagar fell 182 points to 24,064, indicating a weak start for benchmark indices Sensex and Nifty 50.
The decline comes after Asian markets traded lower and crude oil prices surged following renewed geopolitical tensions in the Middle East.
Markets Ended Monday on a Positive Note
Despite opening in the red, the Indian equity benchmarks staged a strong recovery on Monday. The BSE Sensex gained 47 points to close at 77,616, while the Nifty 50 settled 4 points higher at 24,211.
The rebound was led by IT heavyweights including Infosys, Tata Consultancy Services (TCS) and HCL Technologies. The Sensex recovered nearly 932 points from the day’s low, while Nifty climbed from 24,000 to an intraday high of 24,260.
Asian Markets Remain Under Pressure
Asian equities traded lower on Tuesday as rising oil prices and geopolitical uncertainty weighed on investor confidence.
- Japan’s Nikkei fell 0.53%
- Hong Kong’s Hang Seng declined 0.66%
- China’s Shanghai Composite slipped 0.47%
- South Korea’s Kospi dropped 1.9%
The weak performance across Asian markets is likely to influence the Indian stock market today, keeping investors cautious during the opening session.
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US-Iran Tensions Push Crude Oil Above $85
Market sentiment turned negative after the US Central Command (CENTCOM) announced the resumption of maritime blockades involving Iranian ports from July 14.
Concerns over supply disruptions through the Strait of Hormuz pushed Brent crude oil up 2.83% to an intraday high of $85.66 per barrel, raising fears of higher inflation and increased input costs for businesses.
Foreign Investors Continue Selling
Foreign Institutional Investors (FIIs) remained net sellers on Monday, offloading shares worth ₹3,062.27 crore, while Domestic Institutional Investors (DIIs) purchased equities worth ₹2,171.70 crore.
According to NSDL data, FIIs have sold shares worth more than ₹2.55 lakh crore so far this year, reflecting continued caution among overseas investors.
Wall Street Closes Lower
US markets ended lower overnight as higher crude oil prices and weakness in technology stocks weighed on sentiment.
- Dow Jones declined 0.26%
- S&P 500 fell 0.80%
- Nasdaq dropped 1.55%
The overnight weakness is expected to impact the Indian stock market today, with investors closely tracking global developments.
Nifty Technical Outlook
Technical indicators suggest that 24,000 remains a crucial support level for Nifty after Monday’s strong recovery.
Options data shows:
- 24,000 Put holds the highest open interest, indicating strong support.
- 24,500 Call has the highest open interest, suggesting immediate resistance.
Analysts believe the Indian stock market today will remain highly volatile as traders monitor crude oil prices, FII activity and further developments in the US-Iran conflict before taking fresh positions.