The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Wednesday, 12 August, amid overnight mixed global cues.

Asian markets opened mixed on Wednesday, while US stock futures declined for a second consecutive session, pointing to a cautious start for Indian equities.

The Indian stock market ended sharply lower on Tuesday, 11 August, as investors booked profits amid rising crude oil prices and continued uncertainty over the reopening of the Strait of Hormuz and the prospects of a US-Iran agreement.

Domestic Market Recap

On Tuesday, Indian indices ended in the red:

• Sensex slumped by 388 points (0.49%) to close at 78,154.25.
• Nifty 50 moved down by 112 points (0.46%) to settle at 24,471.70.

Gift Nifty

Gift Nifty was trading near 24,546, around 6 points higher than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

US benchmark indices extended their losses to a second consecutive session on Tuesday, August 11, as continued weakness in technology stocks weighed on investor sentiment. Rising crude oil prices also added to market pressure.

• The Dow Jones Industrial Average slumped by 180.13 points (0.34%) to close at 53,791.85.
• S&P 500 was down by 24.91 points (0.32%), ending at 7.728.20.
• The Nasdaq Composite was lower by 159.91 points (0.60%), finishing at 26,445.45.

Crude Oil Prices

• Brent crude climbed by 0.81% to $89.63/barrel
• US West Texas Intermediate (WTI) crude was trading 0.85% lower at $83.91/barrel

Overnight Major Global Events Driving Sentiment

1. US-Iran War: The United States and Iran-backed Houthi forces in Yemen reported separate attacks on commercial vessels in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday. Meanwhile, Iran’s top security official, Mohsen Rezaei, said Tehran would keep the Strait of Hormuz closed until Washington accepts its conditions for ending the conflict. These demands include unfreezing Iranian assets and ending other regional conflicts.said the US must first lift its blockade and compensate Iran for damages. Before the war, the waterway handled around one-fifth of global oil and LNG shipments.

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