The Indian stock market is likely to open lower on Wednesday, 2 September, as weak overnight global cues, rising bond yields and higher crude oil prices following fresh US-Iran tensions weigh on sentiment.

Gift Nifty, which tracks Nifty futures traded on the NSE International Exchange (NSE IX) at GIFT City, Gujarat, also pointed to a weak opening. 

Domestic benchmark indices ended lower in the previous session.

Domestic Market Recap

On Tuesday, Indian indices ended red:

• Sensex slumped by 12.99 points (0.02%) to close at 76,944.28.
• Nifty 50 moved down by 24.60 points (0.10%) to settle at 24,055.80.

Gift Nifty

Gift Nifty was trading near 24,042, around 48 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 419.02 points (0.79%) to close at 52,766.88.
• S&P 500 was down by 54.67 points (0.71%), ending at 7.631.47.
• The Nasdaq Composite was lower by 271.12 points (1.03%), finishing at 26,099.77.

Overnight Major Global Events Driving Sentiment

1. US-Iran War: The conflict between the United States and Iran escalated sharply on Tuesday after the US launched a large wave of airstrikes across southern and western Iran. The strikes targeted key military infrastructure, naval facilities, air defence systems and maritime assets linked to the Iranian government. Iran reportedly responded within hours by launching a coordinated barrage of ballistic missiles and attack drones at US military bases in Jordan, Iraq and Bahrain. Commercial vessels operating near the Strait of Hormuz also came under immediate retaliatory fire.

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