GIFT Nifty signals mildly positive start; global cues, Iran sanctions in focus

GIFT Nifty:

GIFT Nifty September 2026 futures were up 10 points, indicating a mildly positive opening for the Nifty 50. However, trading is likely to remain subdued amid mixed global cues and a lack of major domestic triggers. Investors will remain cautious amid heightened geopolitical tensions and fresh US sanctions on Iran, while elevated oil prices continue to pose a risk to market sentiment. Sector-specific and stock-specific developments are likely to drive individual counters.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 1,181.66 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,493.41 crore in the Indian equity market on 24 August 2026, according to provisional data.

FPIs bought shares worth Rs 13926.01 crore in August so far, through 24 August 2026. This follows net cash purchases of Rs 6,731.97 crore in July 2026, while they were net sellers of Rs 53,957.90 crore in June 2026.

Global Markets:

Asian shares traded lower on Tuesday, tracking a mixed close on Wall Street as investors turned cautious ahead of a data-heavy week featuring Nvidia's earnings, US inflation data and Federal Reserve Chair Kevin Warsh's first Jackson Hole speech.

Wall Street ended mixed on Monday, with technology and semiconductor stocks under pressure as investors assessed fresh US economic measures against Iran. The Dow Jones Industrial Average rose 0.26%, while the S&P 500 fell 0.28% and the Nasdaq Composite declined 0.76%. Nvidia dropped 2.9%, while Micron Technology and Broadcom also fell, weighing on the technology-heavy indexes.

Investor focus also remained on Washington's escalating pressure on Tehran. US Treasury Secretary Scott Bessent outlined a tougher sanctions campaign against Iran, warning of further measures against countries and entities that continue to facilitate trade with Tehran and describing the next phase as an economic D-Day. The latest measures are aimed at intensifying pressure on Iran's remaining economic channels, while markets are also monitoring the potential impact on oil supplies and the Strait of Hormuz.

Oil prices extended their decline on Tuesday after falling sharply in the previous session, offering some relief to bond markets. Brent crude had settled at around $92.17 a barrel on Monday, down 2.4%, as investors assessed the impact of the latest US sanctions and their potential implications for the US-Iran conflict.

US Treasury yields also eased, with the 10-year yield around 4.70% after ending the previous session near that level. The decline came after oil prices fell and investors continued to assess the outlook for inflation, government borrowing and Federal Reserve policy.

The immediate focus is likely to remain on Nvidia, which is scheduled to report its second-quarter fiscal 2027 results after the US market close on Wednesday, 26 August.

Investors will also track the US July Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge, due on Wednesday. The data could influence expectations for the Fed's upcoming policy decisions.

Meanwhile, the Jackson Hole Economic Policy Symposium is scheduled for 27-29 August, with Fed Chair Kevin Warsh set to deliver his first major speech at the event on Friday, 28 August. His remarks will be closely watched for clues on the outlook for interest rates amid persistent inflation concerns and elevated Treasury yields.

Domestic Market:

Key benchmark indices ended lower on Monday, with the Nifty slipping 0.14% to 24,219.05, as investors turned cautious ahead of details of new US sanctions on Iran. The market reversed early gains as geopolitical uncertainty and elevated crude prices weighed on sentiment, although buying in IT and metals stocks helped the Nifty recover from its intraday low of 24,144.30 and close above 24,200. Major sectors declined, with financials among the key drags. In the broader market, midcaps edged higher and smallcaps fell. Brent crude remained elevated near $93 a barrel as markets assessed the potential impact of tougher US sanctions and Iran's threat to disrupt Gulf oil exports.

The S&P BSE Sensex declined 171.72 points or 0.22% to 77,369.11. The Nifty 50 index fell 32.95 points or 0.14% to 24,219.05. In the previous two sessions, the Sensex gained 0.82%, while the Nifty advanced 0.72%.

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