Nifty to open stable on Tuesday
Gift Nifty at 24,670 indicates stable opening of Indian markets despite Asian stock markets reeling under pressure.
The Nifty opening is expected to be stable on Tuesday as Indian markets remain resilient amidst Asian stock market turmoil. However, retail investor participation may be limited due to the recent introduction of the Closing Auction System (CAS) on August 3, which aims to discover closing price equilibrium. Market analysts caution that spot and futures prices for major indices and several stocks have shown significant discrepancies, potentially discouraging retail investors, at least initially.
The primary focus for the week will be on the Reserve Bank of India's (RBI) policy meet, with market participants eagerly awaiting the outcomes, particularly regarding interest rates, inflation outlook, and growth commentary. While the central bank is anticipated to maintain rates unchanged, the pronouncements from the RBI team will be closely scrutinized.
Ponmudi R, CEO of Enrich Money, predicts that Indian equity markets will continue to trade steadily, provided global sentiment improves and institutional buying persists. Recent geopolitical developments, such as the ongoing negotiations between the U.S. and Iran, have contributed to a reduction in geopolitical risk premiums for crude oil.
However, the situation remains fluid, as Iran has denied direct talks with the U.S., while Oman and Iran have discussed the Strait of Hormuz to potentially normalize shipping through the crucial energy corridor.
Institutional flows, including Foreign Portfolio Investors (FPIs) and Domestic Institutional Investors (DIIs), continue to provide support for domestic equities. The Q1 FY27 earnings season is also gaining momentum, with numerous large-cap companies, including Bharti Airtel, ONGC, Power Grid Corporation, Trent, Hindalco Industries, State Bank of India, and Titan Company, set to report their quarterly results.
Management commentary on demand trends, margins, and future outlook will likely influence stock-specific actions throughout the week.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, highlights the conflicting signals from geopolitical developments. While President Donald Trump has temporarily halted military action and diplomatic efforts are gaining traction, Iran's lack of clarity on negotiations with the U.S. has left markets with reduced but not eliminated geopolitical risk.
Consequently, the near-term bias for Indian equities remains cautiously constructive, with the opening expected to be flat to mildly weaker as investors await clearer diplomatic signals and the RBI's policy decision on Wednesday.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.