US-Iran Talks Stuck, Hormuz Fate Remains In Question: Sensex 100 Points Up, Nifty In Red

Investors are likely to remain cautious ahead of the US CPI data for July, which is due later on Wednesday and could influence expectations around the US monetary policy outlook.

Asian equities were mixed in early trade, following losses on Wall Street in the previous session.

Source : ABPLIVE AI

Indian equity benchmarks opened on a mixed note on Wednesday, with global cues remaining uncertain as investors await the release of US inflation data for July. Crude oil prices also remained elevated amid the deadlock over the Strait of Hormuz, adding to the cautious mood.

The BSE Sensex opened in green, climbing close to 100 points and tested 78,250, while the NSE Nifty50 fell a little over 20 points and touched 24,450, as of 9:15 AM.

GIFT Nifty Signals Muted Opening

The GIFT Nifty pointed to a largely flat start for the domestic benchmark. The futures were quoted at 24,547, up just 6 points, suggesting limited directional momentum at the start of the session.

At around 9:03 AM, the Sensex was trading at 78,262.46, up 108.21 points, or 0.14 per cent, while the Nifty was at 24,462.55, down 9.15 points, or 0.04 per cent.

Investors are likely to remain cautious ahead of the US Consumer Price Index (CPI) data for July, which is due later on Wednesday and could influence expectations around the US monetary policy outlook.

Asian Markets Mixed After Wall Street Decline

Asian equities were mixed in early trade, following losses on Wall Street in the previous session.

South Korea's Kospi gained 1.94 per cent, while Hong Kong's Hang Seng declined 1.10 per cent.

Overnight, US markets ended lower. The Dow Jones Industrial Average declined 0.34 per cent, while the S&P 500 fell 0.32 per cent. The Nasdaq Composite ended 0.60 per cent lower.

Crude Oil Nears $90 As Hormuz Talks Remain Stalled

Crude oil prices continued to rise amid the ongoing uncertainty surrounding the Strait of Hormuz.

Oil futures were quoted at $89.55 per barrel, up 0.72 per cent, keeping prices close to the psychologically important $90 mark.

The deadlock over a proposed Hormuz agreement remains a key factor for global energy markets, with investors watching developments closely for their potential impact on oil supplies and prices.

Gold, Silver Trade Higher

Precious metals also moved higher in early trade.

Gold futures gained 0.34 per cent, while silver futures advanced 0.49 per cent.

The movement in precious metals comes as investors assess global market risks alongside the upcoming US inflation data.

Market Technical Outlook

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the domestic market witnessed profit-booking at higher levels in the previous session, with the Nifty falling 112 points and the Sensex declining 388 points. He noted that pharma and digital indices gained more than 1 per cent, while the FMCG index fell nearly 1 per cent.

According to Chouhan, persistent selling at higher levels resulted in a bearish candle formation on the daily chart, indicating continued weakness.

He identified 24,550 for the Nifty and 78,500 for the Sensex as key resistance levels. "As long as the market is trading below this level, a weak sentiment is likely to continue," Chouhan said.

He added that a break below these levels could see the Nifty retest 24,350-24,250 and the Sensex move towards 77,700-77,500. Conversely, a move above 24,550/78,500 could improve sentiment and open the possibility of a rebound towards 24,650-24,700/78,800-79,000.