GIFT Nifty falls, signals weak start for Sensex, Nifty; oil rebounds above $106 on US-Iran tensions

As per the latest business developments, Indian key market indices The two key benchmark indices are likely to open softer on Monday, with GIFT Nifty signalling a soft opening as renewed US-Iran tensions pushed oil price marks sharply elevated and kept global risk appetite subdued. Rising global bond yields, a stronger dollar and persistent foreign institutional selling are additionally likely to stay key headwinds for domestic equities.

GIFT Nifty was trading at 23,115 around 8 am, down 74 points, or 0.32 percent. The indication comes after the Nifty 50 recovered in the previous session to close at 23,140.50.

Oil is likely to stay the biggest immediate concern for Indian markets after Brent jumped back above $106 a barrel following US President Donald Trump's rejection of an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz.

Asian equities made a wary start to the week, while US equity futures were subdued as market participants additionally looked ahead to a busy week of US employment and inflation data that could shape expectations for the The US central bank's rate trajectory.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

Indian markets recovered on Friday

Indian equities ended elevated on Friday, with the Nifty finishing near the day's high. The Sensex advanced 315.2 points, or 0.43 percent, to 73,895.74, while the Nifty rose 77.4 points, or 0.34 percent, to 23,140.50.

That stated, foreign flows remained a concern. FIIs extended their selling for a second consecutive session, offloading equities worth Rs 3,696 crore. DIIs partly countered the outflows with purchases worth around Rs 2,838 crore.

Ponmudi R, CEO of Enrich Money, stated renewed geopolitical uncertainty and the rebound in oil price marks were weighing on investor sentiment. Rising global bond yields and a stronger US dollar additionally stay important headwinds for emerging markets, while sustained FII selling will be another factor to monitor, he stated. Brent crude jumps above $106

Crude prices rebounded sharply on Monday after Trump rejected an Iranian peace proposal, diminishing hopes for an imminent resolution to the conflict and reopening of the Strait of Hormuz. Brent crude jumped 1.6 percent to $106 a barrel, taking its upside for September to around 17 percent. US West Texas Intermediate crude rose 1.1 percent to $93.47 a barrel.

Asian equities traded cautiously on Monday as market participants assessed the renewed climb in oil alongside persistent pressure in global bond markets. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 percent. Japan's Nikkei bucked the broader trend to climb 0.8 percent, while South Korea's Kospi declined 0.6 percent.

US equity futures additionally indicated a wary start to the week, with S&P 500 futures down 0.2 percent, while Nasdaq futures were broadly flat. Market participants will closely track US employment and inflation notes the current week for clues on whether the The US central bank may need to pursue a steeper path of interest-rate increases.

Wall Street ended elevated on Friday

US stocks nevertheless finished elevated on Friday, supported by upside in Microsoft and other AI-linked technology shares, even as elevated crude prices and high Treasury yields continued to temper risk appetite. The S&P 500 advanced 0.51 percent to 7,743.41, leaving the benchmark less than 1 percent below its mid-August peak. The Nasdaq Composite advanced 0.48 percent to 27,068.72, while the Dow Jones Industrial Average advanced 0.93 percent to 51,828.62.

Ponmudi stated the Nifty's broader technical structure stays weak despite Friday's recovery. 23,200 is the immediate resistance, while a sustained move above 23,300 could backing a recovery towards 23,500. On the downside, 23,000 stays the crucial backing, with a decisive break potentially exposing the index to 22,800.