The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, 3 August, as investors track overnight progress in the ongoing US-Iran peace talks.

Asian markets traded mostly lower on Monday, while the US stock market rallied sharply in the previous session, providing mixed global cues.

The Indian stock market extended its winning streak for a third consecutive session on Friday, 31 July, with the benchmark Sensex and Nifty 50 ending the day firmly in positive territory.

Domestic Market Recap

On Friday, Indian indices ended in the green:

• Sensex gained by 166 points (0.21%) to close at 78,094.64.
• Nifty 50 moved up by 66 points (0.27%) to settle at 24,383.60

Gift Nifty

Gift Nifty was trading near 24,580, around 200 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

US stock futures moved higher on Sunday evening as investors turned their focus to the July employment report and a busy earnings calendar scheduled for the first week of August.

• The Dow Jones Industrial Average gained by 276.97 points (0.53%) to close at 52,485.03.
• S&P 500 was up by 52.09 points (0.70%), ending at 7.489.72.
• The Nasdaq Composite was higher by 251.68 points (1.00%), finishing at 25,373.85.

Crude Oil Prices

Oil prices declined after US President Donald Trump announced that fresh negotiations with Iran would begin on Monday, following his decision to call off a planned military strike against the Islamic Republic.

Overnight Major Global Events Driving Sentiment

1. RBI MPC Meeting: The Reserve Bank of India’s (RBI) three-day Monetary Policy Committee (MPC) meeting will begin on Monday, August 3, with Governor Sanjay Malhotra set to announce the policy decision on August 5. Investors will closely track the central bank’s commentary on inflation, economic growth, and the future trajectory of interest rates.
2. US-Iran War: US President Donald Trump said on Sunday aboard Air Force One that he had cancelled a planned large-scale military strike on Iran after key Middle Eastern allies, including Saudi Arabia, urged Washington to pursue a diplomatic solution. He added that the US called off the operation on the condition that efforts to secure a swift agreement to reopen the Strait of Hormuz continue, while urging all parties to accelerate the negotiations.

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