The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a muted note on Tuesday, 4 August, as investors remain cautious amid uncertainty surrounding the ongoing US-Iran talks.

Asian markets traded mostly higher on Tuesday, while the US stock market edged up in the previous session, offering mixed global cues.

The Indian stock market extended its winning streak to a fourth consecutive session on Monday, 3 August, with the benchmark indices posting strong gains. A sharp decline in crude oil prices, driven by optimism over a potential peace agreement between the United States and Iran, boosted investor sentiment.

Domestic Market Recap

On Monday, Indian indices ended in the green:

• Sensex soared by 544 points (0.70%) to close at 78,639.
• Nifty 50 moved up by 391 points (1.60%) to settle at 24,774.30

Gift Nifty

Gift Nifty was trading near 24,628, around 21 points lower than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

US stock futures edged higher on Monday night after Wall Street posted strong gains in the previous session, supported by easing crude oil prices and a rally in major technology stocks.

• The Dow Jones Industrial Average soared by 693.38 points (1.32%) to close at 53,178.41.
• S&P 500 was up by 110.78 points (1.48%), ending at 7.600.50.
• The Nasdaq Composite was higher by 540.04 points (2.13%), finishing at 25,913.90.

Crude Oil Prices

• Brent crude climbed by 0.70% to $84.39/barrel
• US West Texas Intermediate (WTI) crude was trading 0.70% lower at $80.95/barrel

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 continue on Tuesday, August 4. RBI Governor Sanjay Malhotra is scheduled to announce the policy decision on August 5 after the meeting, which began on August 3. Investors will closely watch the central bank’s stance on inflation, growth, and interest rates.
2. US-Iran War: US President Donald Trump said on Sunday that he would hold off on launching fresh strikes against Iran as diplomatic efforts continue to end the conflict and resolve issues surrounding control of the strategic Strait of Hormuz. Before the conflict, the vital waterway handled nearly 20% of the world’s daily oil consumption. However, Iran’s Foreign Ministry spokesperson Esmail Baghaei rejected Trump’s claims on Monday, saying that no negotiations with the United States were currently underway and that no meetings had been scheduled.

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