Mumbai, Aug 25: Indian equity markets are likely to begin Tuesday’s trading session on a cautious note, with weak GIFT Nifty signals, mixed global markets and continuing geopolitical tensions keeping investors on the sidelines.
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Domestic equities ended mixed on Monday, with the Nifty 50 slipping around 0.1 per cent, as investors remained watchful in the absence of strong domestic triggers. The market is now looking for fresh cues from global developments, crude oil prices, currency movements and foreign investor activity.
The immediate concern for Dalal Street is the broader global risk environment. Geopolitical tensions remain elevated, particularly amid developments involving the United States and Iran. Any further escalation could affect crude oil prices and add pressure to economies such as India that depend heavily on imported energy.
The US Treasury’s move to expand its long-term bond buyback programme has also remained in focus. The decision has influenced global bond markets and currency movements, with investors assessing whether the measure can provide lasting stability to US Treasury yields.
For Indian investors, higher global yields and uncertainty in international markets can influence foreign capital flows and valuations. At the same time, a weaker US dollar and strength in precious metals have added another layer to the global market picture.
Market participants are also keeping a close watch on crude oil, which has remained elevated amid geopolitical concerns. Higher oil prices could increase India’s import costs and put pressure on inflation, the rupee and corporate margins.
The domestic market may therefore remain range-bound and volatile during the session. Investors are expected to focus on individual stocks and sectors where company-specific developments could provide trading opportunities despite the lack of broad market triggers.
The Nifty’s 24,000 level is likely to remain an important psychological area for investors, while movements in crude oil, the rupee, US bond yields and global equity markets could determine the direction of the session.
With global uncertainty still high, traders are likely to remain selective and cautious rather than make aggressive bets. The overall market mood is expected to be shaped by a combination of geopolitical developments, global financial conditions and foreign fund flows.
