Nifty, Sensex Set for Flat Opening; FIIs Turn Buyers on Monday

Pre-Market Update at 7:30 AM: Indian benchmark indices, Sensex and Nifty 50, are expected to start Tuesday, August 19, on a flat note. This comes amid cautious global market sentiment as investors await the outcome of discussions between US President Donald Trump and European leaders on resolving the Russia-Ukraine conflict. As of 7:17 AM, the GIFT Nifty was trading near 24,988, up 25 points from its previous close.

On Monday, domestic equities rallied strongly, supported by both local and global cues. Prime Minister Narendra Modi’s announcement of GST-related reforms, an upgrade in India’s credit rating by S&P Global, and optimism regarding peace progress in the Russia-Ukraine conflict lifted investor sentiment. The government’s proposal to simplify the GST structure to two slabs of 5 per cent and 18 per cent, replacing the earlier 12 per cent and 28 per cent rates, was welcomed by the markets as it is expected to boost consumption. The Nifty 50 gained 1 per cent to close at 24,876.95, marking its biggest single-day gain since June 26, 2025, while the Sensex advanced 0.84 per cent to settle at 81,273.75.

Foreign Institutional Investors (FIIs) turned net buyers on Monday, August 18, breaking a four-day selling streak by purchasing equities worth Rs 550.85 crore. Domestic Institutional Investors (DIIs) continued their buying momentum, acquiring shares worth Rs 4,103.81 crore and extending their buying streak to 30 consecutive sessions.

According to the Periodic Labour Force Survey (PLFS), India’s unemployment rate for individuals aged 15 and above declined to 5.2 per cent in July, from 5.6 per cent in June. The improvement was led by rural areas, where unemployment fell to 4.4 per cent compared with 4.9 per cent a month earlier. However, urban unemployment edged up slightly to 7.2 per cent from 7.1 per cent.

Asian markets traded mixed, while Wall Street ended Monday’s session largely unchanged. The Dow Jones Industrial Average fell 34.30 points, or 0.08 per cent, to 44,911.82. The S&P 500 closed marginally lower by 0.01 per cent at 6,449.15, while the Nasdaq Composite gained 0.03 per cent to end at 21,629.77. US President Donald Trump met Ukrainian President Volodymyr Zelenskyy and European leaders at the White House, with talks focused on possible steps toward ending the Russia-Ukraine conflict. Trump confirmed preparations for direct talks between Russian President Vladimir Putin and Zelenskyy, while assuring US support for Ukraine’s security as part of any peace deal.

The US dollar index (DXY) climbed 0.31 per cent to 98.122, reflecting investor caution ahead of further geopolitical developments. Gold remained steady at USD 3,331.89 per ounce as traders awaited cues from the Federal Reserve’s Jackson Hole symposium on rate cuts. Crude oil prices fell slightly as traders factored in potential progress in Russia-Ukraine talks. WTI crude futures slipped to USD 63.2 per barrel, while Brent crude eased 0.02 per cent to USD 65.95 per barrel.

For today, PG Electroplast, Titagarh Rail System and RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.