The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, 7 August, as investors remain cautious overnight amid uncertainty over the ongoing Middle East peace efforts.

Asian markets traded mostly mixed on Friday, while the US stock market ended largely unchanged in the previous session, offering limited global cues.

The Indian benchmark indices traded within a narrow range on Thursday as investors stayed cautious while awaiting greater clarity on the prospects of a peace deal in the Middle East. Weakness in heavyweight stocks also dragged on overall market sentiment.

Domestic Market Recap

On Thursday, Indian indices ended in the green:

• Sensex gained by 373.76 points (0.48%) to close at 78,954.76.
• Nifty 50 moved up by 11.35 points (0.05%) to settle at 24,636.

Gift Nifty

Gift Nifty was trading near 24,657, around 82 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

• The Dow Jones Industrial Average slumped by 464.02 points (0.85%) to close at 53,885.10.
• S&P 500 was down by 13.59 points (0.18%), ending at 7.709.96.
• The Nasdaq Composite was lower by 15.09 points (0.05%), finishing at 26,348.35.

Crude Oil Prices

• Brent crude climbed by 1.2% to $83.48/barrel
• US West Texas Intermediate (WTI) crude was trading 1.1% lower at $78.84/barrel

Overnight Major Global Events Driving Sentiment

1. US-Iran War: Iran is considering legislation that could bar US, Israeli, and other vessels it classifies as hostile from passing through the Strait of Hormuz. The strategically important waterway handled nearly one-fifth of global oil and liquefied natural gas shipments before the conflict began in late February. Iran’s Fars news agency reported that a parliamentary committee is reviewing the draft bill. The proposed legislation would also allow authorities to impose fines of up to 20% of the value of the cargo on vessels that violate the restrictions.

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