Pre-Market Update: Sensex, Nifty 50 Likely to Open Higher; GIFT Nifty Signals Positive Start Amid Asian Stocks Rally

Pre-Market Update at 7:40 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a positive note on Thursday, August 20, after a recovery in Wall Street and a broad rally across Asian markets. Softer U.S. Treasury yields have improved global risk appetite, although elevated crude oil prices and the ongoing U.S.-Iran conflict remain key concerns.

GIFT Nifty was trading at 24,216.50 at 07:31 IST, around 138.20 points, or 0.57 per cent, above Wednesday's Nifty 50 close of 24,078.30, indicating a positive start for domestic equities.

On Wednesday, the Nifty 50 extended its losing streak to seven consecutive sessions, its longest run of declines since September 2025. The index closed 76.60 points, or 0.32 per cent, lower at 24,078.30, while the Sensex declined 325.78 points, or 0.42 per cent, to settle at 76,909.68. Persistent concerns over the West Asian conflict, elevated crude oil prices and rising global bond yields continued to weigh on sentiment.

Asian markets traded mostly higher on Thursday as easing pressure in global bond markets supported investor sentiment. South Korea's KOSPI surged 4.52 per cent, while Japan's Nikkei 225 gained 1.24 per cent. Hong Kong's Hang Seng advanced 0.99 per cent and China's Shanghai Composite rose 0.37 per cent. China kept its one-year and five-year loan prime rates unchanged at 3.00 per cent and 3.50 per cent, respectively.

Wall Street ended Wednesday's session in positive territory as longer-dated U.S. Treasury yields declined. The S&P 500 gained 0.21 per cent to 7,707.98, while the Nasdaq Composite rose 0.16 per cent to 26,331.09. The Dow Jones Industrial Average added 0.22 per cent to close at 53,463.05.

The U.S. Treasury's plan to increase liquidity-support buybacks of longer-dated debt helped ease pressure on bond yields. However, the Federal Reserve's latest meeting minutes continued to highlight concerns about inflation and the possibility of interest rates remaining elevated. U.S. stock futures were also marginally higher in early trade, supporting the positive global market mood.

Crude oil prices remained elevated amid concerns over the U.S.-Iran conflict and disruptions to shipping through the Strait of Hormuz. Brent crude traded at around USD 91.92 per barrel, up 0.33 per cent, while the actively traded October WTI contract was near USD 84.53 per barrel, up 0.2 per cent.

High crude oil prices remain a concern for India as they could increase inflationary pressures and widen the country's import bill. The trend is negative for oil marketing companies, airlines and paint manufacturers but supportive for upstream oil producers.

Geopolitical tensions remain elevated after U.S. President Donald Trump announced plans for stronger economic measures against Iran and called on U.S. allies to support Washington's efforts. The conflict and concerns surrounding the safety of shipping through the Strait of Hormuz continue to remain major drivers for crude oil prices and global risk sentiment.

Gold prices remained near a more than two-month high following the sharp rally seen on Wednesday. Spot gold was trading around USD 4,492.56 per ounce, although it was down around 0.6 per cent in early trade. The decline in U.S. Treasury yields and heightened geopolitical uncertainty have continued to support demand for safe-haven assets.

Foreign institutional investors were net buyers of Indian equities worth Rs 407.99 crore on Wednesday. Domestic institutional investors also remained buyers, purchasing shares worth Rs 3,973.72 crore. The continued support from domestic institutions has helped cushion the market despite weakness in global sentiment and the Nifty 50's seven-session losing streak.

Hyundai Motor India will increase vehicle prices by up to 1 per cent from September due to higher input, commodity and operating costs. BSE signed an agreement with MSCI to explore the introduction of India-listed futures and options linked to MSCI indices, subject to regulatory approvals.

HEG received approval from the NCLT for its scheme of arrangement, including the proposed demerger that provides shareholders with a 1:1 share entitlement in HEG Graphite. Ceigall India received five letters of award from the Ministry of Road Transport and Highways, with an aggregate bid cost of Rs 2,423.70 crore.

Strides Pharma Science received the U.S. Food and Drug Administration's establishment inspection report for its Bengaluru facility with a Voluntary Action Indicated status. Oil India fixed September 4 as the record date for its FY26 final Dividend, subject to shareholder approval. Aditya Infotech approved plans to raise up to Rs 1,500 crore through permitted equity routes, including a qualified institutional placement.

The Nifty 50 is currently testing a crucial support zone around 24,000-24,050 after falling for seven consecutive sessions. Immediate resistance is placed around 24,200-24,300, followed by 24,400. A sustained move above 24,300 could improve short-term sentiment and open the door towards 24,400. However, a decisive break below 24,000 could trigger further weakness towards 23,900 and 23,850.

Bank Nifty has support near 57,000, while resistance is placed around 57,500-57,600.

Overall, the positive GIFT Nifty signal, stronger Asian markets and softer U.S. Treasury yields could support a higher opening for the Sensex and Nifty 50. However, investors are likely to remain cautious amid Brent crude prices near USD 92 per barrel and continued geopolitical tensions in West Asia.

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

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