The Indian stock market is expected to open lower on Tuesday, following weak global market cues as crude oil prices rose after the latest escalation in the US-Iran war. The trends on Gift Nifty also signal a negative start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 24,196 level, a discount of nearly 55 points from the Nifty futures' previous close.
“Given the uncertain global backdrop, participants are advised to maintain a cautious stance, keep position sizes light and focus on strict risk management while adopting a selective trading approach,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
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Here are five key factors to know ahead of the opening of the Indian stock market today:
Asian Markets
Asian stock market traded mixed on Tuesday on worries over fresh escalation of US-Iran war. Japan's Nikkei 225 fell 0.65%, while the Topix rose 0.33%. South Korea's Kospi was flat and the Kosdaq shed 1.06%. Hong Kong Hang Seng index futures were indicated a lower opening.
Wall Street
US stock market ended lower on Monday, as jump in crude prices revived inflation fears and raised the likelihood of tighter monetary policy.
The Dow Jones Industrial Average declined 374.09 points, or 0.70%, to 53,185.90, while the S&P 500 fell 25.62 points, or 0.33%, to 7,686.14. The Nasdaq Composite closed 31.53 points, or 0.12%, lower at 26,370.89.
US-Iran War
US President Donald Trump threatened to hit Iran “hard” after the two sides exchanged fresh fire. However, Trump ruled out using nuclear weapons against Iran as a way to deliver a decisive blow.
India GDP Growth
India's economic growth remained resilient in the first quarter of FY27. India's real GDP growth in Q1FY27 was at 7.8%, ahead of the market estimate of 7.3%. The growth was broadly unchanged from the 7.8% recorded in the previous quarter.
Meanwhile, India's fiscal deficit stood at Rs 4.55 lakh crore during April-July, accounting for 26.8% of the full-year target for FY27. The government has pegged its FY27 fiscal deficit target at 4.3% of GDP, or Rs 16.96 lakh crore.
Crude Oil Prices
Crude oil prices traded higher as US and Iran resumed attacks, renewing fears of supply disruptions. Brent crude futures gained 0.66% to $91.09 a barrel, while US West Texas Intermediate crude rose 1.01% to $86.63.
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