Sensex, Nifty Set for Muted Open as GIFT Nifty Signals Flat Start, Asian Markets Rise

Indian equity benchmarks were poised for a tepid start on Monday, August 10, with GIFT Nifty futures hovering close to the 24,655-24,665 mark, largely unchanged from Friday's close, as traders weighed a mix of firm Asian cues, rising crude prices and continued uncertainty over the reopening of the Strait of Hormuz.

Asian Markets Advance, Track Wall Street Gains

Most Asian indices opened higher on Monday, extending last week's rally on Wall Street. Japan's Nikkei 225 climbed around 1.4-1.5 per cent in early trade, while South Korea's Kospi added close to 0.5-0.6 per cent. The upmove came after the Dow Jones Industrial Average and the S&P 500 closed last week roughly 0.3 per cent and 0.6 per cent higher respectively, with the Nasdaq Composite gaining about 1.3 per cent, helped by softer-than-expected US jobs data that fuelled hopes of a more accommodative Federal Reserve stance.

By contrast, US index futures slipped modestly in the Asian session, reflecting lingering caution over how talks between Washington, Tehran and Muscat on the Strait of Hormuz will play out through the week.

Oil Firms on Hormuz Uncertainty

Crude oil extended its recent gains, with Brent futures rising a little over one per cent to trade near $84.5 a barrel, while US West Texas Intermediate moved above $78 a barrel. The move came as Iran indicated its negotiations with Oman over shipping arrangements through the strait were in their "final stages," even as Tehran maintained that a deal with Muscat would not automatically translate into the waterway reopening. Gold and silver futures eased marginally in early trade, a sign that some of the safe-haven demand seen in recent sessions had cooled slightly.

For Indian markets, elevated oil prices remain a watchpoint given the country's heavy reliance on imported crude, with any sustained rise carrying implications for the rupee, the current account and retail inflation, due for release on August 12.

Heavy Earnings Slate, Two IPOs Open

Monday brings one of the busiest days of the ongoing June-quarter earnings season, with more than 250 companies scheduled to report results, including Bosch, Vodafone Idea, Info Edge, Hindustan Copper, Gland Pharma, Dilip Buildcon, KEC International and Zee Entertainment Enterprises, among others. Vodafone Idea's results will be closely tracked given persistent questions over the telecom operator's subscriber trends and debt position, with its earnings call scheduled later in the day.

The primary market also remained active, with Dhoot Transmission and Molbio Diagnostics opening their initial public offerings for subscription on Monday, while LEAP India, Technocraft Ventures and Optimystix Entertainment entered their second day of bidding.

Rupee Opens Marginally Stronger

The rupee opened modestly firmer against the US dollar, building on a steady tone from the previous session, even as traders stayed watchful of crude price movements and portfolio flows. Foreign institutional investors have been net sellers of Indian equities for a prolonged stretch this year, and their positioning around the earnings season and the Hormuz situation will remain a key swing factor for market direction this week.

Overall, analysts expect the Nifty to stay range-bound in the near term, with the market likely to take cues from the pace of Q1 results, crude oil trends and any fresh developments on the US-Iran-Oman talks over the strait.

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