The Indian stock market is likely to see a gap-down opening on Wednesday, 9 September, as rising Brent crude prices and escalating overnight tensions in the Middle East weigh on global risk sentiment and investor appetite.

Asian markets opened broadly higher on Wednesday, while US stock futures traded almost flat.

Indian benchmark indices, the Sensex and Nifty 50, fell sharply on Tuesday, 8 September, extending their losses for the second consecutive trading session.

Domestic Market Recap

On Tuesday, Indian indices ended red:

• Sensex slipped by 555 points (0.73%) to close at 76,577.58.
• Nifty 50 moved down by 144 points (0.61%) to settle at 23,635.10.

Gift Nifty

Gift Nifty was trading near 23,638, around 100 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 628.18 points (1.18%) to close at 52,786.07.
• S&P 500 was down by 45.08 points (0.58%), ending at 7.673.52.
• The Nasdaq Composite was lower by 85.58 points (0.32%), finishing at 26,421.41.

Crude Oil Prices

• Brent crude gained by 1.60% to $99.49/barrel
• US West Texas Intermediate (WTI) crude was trading 1.72% higher at $94.63/barrel

Overnight Major Global Events Driving Sentiment

1. Crude oil moving towards $100: The biggest negative trigger is the sharp rise in crude oil prices as the US-Iran conflict and wider Middle East tensions intensify. Brent crude has moved close to $100 a barrel, while WTI is around $94-$95.
2. IT stocks are taking a major hit: The Nifty IT index is down around 2-3%, making technology one of the biggest drags on today’s market. HCL Technologies, Tech Mahindra and Infosys were among the major losers at the open.

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