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The GIFT Nifty, an early indicator of Nifty 50’s performance, traded at 24,621.50. On Monday, The Nifty 50 closed 13.15 points, or 0.05%, higher at 24,583.80, while the Sensex gained 43.27 points, or 0.06%, to 78,542.44. Bajaj Finance and Titan contributed 16.34 points and 14.94 points, respectively, to the Nifty 50’s gain. SBI and Reliance Industries pulled the index down by 24.64 points and 16.49 points, respectively.
Asian stock markets traded mixed on Tuesday, with Japanese equities extending gains while South Korean and Chinese shares moved lower. Investors were assessing the latest developments in the Middle East, particularly the outlook for shipping through the Strait of Hormuz, after oil prices jumped sharply in the previous session.
Japan’s Nikkei 225 rose 2.08%, while South Korea’s Kospi declined 0.96%. Australia’s ASX 200 gained 0.20% and China’s Shanghai Composite slipped 0.01%.
Oil remained a key market variable after crude prices climbed about 5% on Monday as expectations for a near-term US-Iran agreement on reopening the Strait of Hormuz weakened. West Texas Intermediate settled around $82.13 a barrel, while Brent crude ended near $87.72.
The increase came after US President Donald Trump told Axios on Sunday that Washington was “only semi-negotiating” with Tehran, a shift from his earlier suggestion that talks between the two sides were under way. Trump also indicated that the US could use its naval blockade to maintain pressure on Iran rather than immediately resorting to another round of airstrikes.
Iran, meanwhile, has said it is working towards an arrangement with Oman aimed at facilitating shipping through the Strait of Hormuz. But Tehran has continued to reject direct discussions with Washington unless certain conditions are met.
Iranian Foreign Minister Abbas Araghchi said on Sunday that negotiations with the US could not resume while Washington continued to violate the June memorandum of understanding and failed to compensate Iran for what Tehran considers breaches of the agreement, according to Tasnim News Agency.
The uncertainty followed Trump’s decision on Aug. 1 to cancel a planned attack on Iran in order to provide room for negotiations. With the diplomatic path now appearing less certain, markets are assessing the risk that disruptions to the key energy corridor could persist.
The S&P 500 ended Monday little changed as investors continued to grapple with the Middle East uncertainty. US equity futures were also subdued, with S&P 500 futures marginally lower, Nasdaq-100 futures near flat and Dow Jones Industrial Average futures down 37 points.
For Asian markets, the immediate focus remains on whether shipping through Hormuz can recover. A prolonged disruption could keep crude prices elevated and increase concerns about inflation, while signs of progress between Washington and Tehran could have the opposite effect on oil and broader risk sentiment.
