Stock Market Today: Gift Nifty To Crude Oil Prices — Five Key Factors That May Drive Sensex, Nifty 50 on August 12

The Indian stock market is expected to see a muted opening on Wednesday, following mixed cues from global markets, as rising crude oil prices and geopolitical tensions in the Middle East continue to weigh on investor sentiment. The trends on Gift Nifty also signal a flat start for the Indian benchmark indices, Nifty 50 and Sensex, today.

The Gift Nifty was trading around 24,533 level, a discount of nearly 8 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market ended lower, amid concerns over the elevated crude oil prices.

The Sensex dropped 388.19 points, or 0.49%, to close at 78,154.25, while the Nifty 50 settled 112.10 points, or 0.46%, lower at 24,471.70.

“Given the combination of elevated crude prices, geopolitical uncertainty, and renewed pressure on financial heavyweights, we recommend maintaining a cautious, stock-specific approach, emphasizing relative strength, disciplined position sizing, and prudent risk management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

ALSO READ: Asian Stock Markets Today: Kospi Rises 2%, Nikkei Declines; Hormuz Talks Remain In Focus

Here are five key things that investors must know before the opening of the Indian stock market today:

Asian Markets

Asian markets traded mixed on Wednesday, tracking overnight losses on Wall Street. Japan’s Nikkei 225 rose 0.07% while the Topix gained 0.54%. South Korea’s Kospi rallied 2.06%, while the Kosdaq fell 0.31%.

Wall Street

US stock market ended lower on Tuesday, amid pessimism about a potential Iran peace deal. The Dow Jones Industrial Average declined 0.34% to 53,791.85, while the S&P 500 fell 0.32% to 7,728.20. The Nasdaq closed 0.6% lower at 26,445.45.

US-Iran War Updates

The prospects for ending the Middle East war appeared to dim after the US and Yemen’s Iran-aligned Houthis reported separate attacks on shipping, with Tehran saying the Strait of Hormuz would remain closed unless Washington accepts its conditions. 

The US military said that its forces fired on a Panamanian-flagged ship in the Gulf of Oman that tried to evade the American blockade on Iranian ports.

ALSO READ: Stock Market Today: All You Need To Know Going Into Trade On August 12 

Fitch Retains India Credit Rating

Fitch Ratings retained India’s sovereign credit rating at ‘BBB-‘ for the 20th year in a row, with a stable outlook, citing robust economic growth outlook and solid external finance fundamentals despite headwinds from the energy shock due to the West Asia conflict. The ratings agency forecast a 6.4% GDP growth in the current fiscal year, which is slower than the average 7.4% growth clocked over the past three years.

Crude Oil Prices

Crude oil prices rose amid doubts about a US-Iran peace deal and after attacks on two ships in the Strait of Hormuz ‌fuelled supply disruption concerns. Brent futures gained 0.64% to $89.48 a barrel, while US West Texas Intermediate (WTI) crude advanced 0.78% to $83.85.

ALSO READ: Catch Stock Market Live Updates here

Essential Business Intelligence,
Sharp Market Insights,
Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.