Opening Bell: Nifty 50, Sensex Fall Over 200 Points as West Asia Tensions Push Oil Prices Higher

Market Update at 09:30 AM: The Nifty 50 and the Sensex opened lower on Tuesday as rising crude oil prices and concerns over escalating tensions in West Asia weighed on investor sentiment.

As of 9:18 AM, the Sensex was down 260 points, or 0.33 per cent, at 77,468.44, while the Nifty 50 declined 52.90 points, or 0.22 per cent, to 24,234.75.

Infosys, InterGlobe Aviation and Max Healthcare Institute were among the biggest losers on the Nifty 50. In the broader market, the Nifty MidCap index declined 0.08 per cent, while the Nifty SmallCap index gained 0.27 per cent.

In the primary market, Shankesh Jewellers and Sunshine Pictures opened their initial public offers (IPOs) for subscription on Tuesday. Horizon Industrial Parks and Lalithaa Jewellery Mart entered their second day of IPO subscription.

In the SME segment, Technocrats Plasma Systems, ENS Enterprises and Skytech Infinite Platform IPOs entered their final day of subscription.

Meanwhile, Milky Mist Dairy Food is set to make its stock market debut on Tuesday. The grey market premium (GMP) indicated a potential listing gain of around 14.1 per cent.

Pre-Market Update at 7:30 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, August 18, following weakness across Asian markets and a largely flat trend in U.S. stock futures. The cautious global setup comes amid renewed geopolitical concerns and rising crude oil prices.

As of 7:21 AM, GIFT Nifty was trading around 24,303, indicating a discount of 72 points over the previous close of Nifty futures and signalling a weak opening for the Nifty 50.

Crude oil prices moved higher on Tuesday as hopes of a deal to end the Middle East conflict weakened. Iran has indicated a more aggressive military stance, while the U.S. has ruled out an extension of the ceasefire, raising concerns over potential disruptions to global energy supplies.

Brent crude futures rose 27 cents, or 0.3 per cent, to USD 91.14 a barrel after touching their highest level since July 30 in the previous session. U.S. West Texas Intermediate crude gained 42 cents to USD 85.04 a barrel after rising more than 1 per cent earlier to USD 85.37, its highest level since July 31.

U.S.-Iran tensions remain a key risk for global markets. According to a Reuters report citing a senior Iranian official, Iran is preparing to adopt a more “fully offensive” military stance as negotiations for a lasting resolution with the U.S. have stalled. The development came after Washington decided not to extend the temporary ceasefire.

Progress towards peace negotiations and the resumption of oil tanker movements through the strategically important Strait of Hormuz has also stalled. The prolonged uncertainty has increased concerns over the potential impact on global energy supplies.

Iran is also negotiating with Oman over an arrangement to manage the Strait of Hormuz and has indicated that the two sides are close to reaching an agreement. However, U.S. President Donald Trump has threatened military action against Oman, a lonGSTanding U.S. security partner. At the same time, reports suggest that Trump has initiated back-channel discussions with Iran's Islamic Revolutionary Guard Corps, keeping the possibility of diplomatic engagement open.

Gold prices rose for a third consecutive session on Tuesday as expectations of a potential U.S. interest rate hike next month eased. Investors are now awaiting the minutes of the Federal Reserve's latest meeting for further indications on the central Bank's monetary policy outlook.

Spot gold gained 0.4 per cent to USD 4,431.09 per ounce, while U.S. gold futures for December delivery advanced 0.3 per cent to USD 4,487.70. Gold's rebound above the USD 4,000-per-ounce mark has been supported by renewed investor demand and a recovery in central-bank purchases, particularly from China.

For the August 18 expiry, the Put-Call Ratio (PCR) stands at 0.91. On the Put (PE) side, significant open interest addition was seen at the 24,250 strike, while the 24,400 strike witnessed significant put unwinding. The highest concentration of put open interest was seen at the 24,300 strike.

On the Call (CE) side, significant open interest addition was recorded at the 24,350 strike, while the 25,000 strike witnessed maximum call unwinding. Significant call open interest remained concentrated at the 24,500 strike.

For the Nifty 50, immediate support is placed at 24,200. A decisive break and sustained trading below this level could intensify selling pressure and drag the index towards the psychological 24,000 mark. On the upside, the 24,400-24,500 zone is likely to act as a key hurdle.

Based on pivot levels, resistance is placed at 24,342, 24,374 and 24,425, while supports are at 24,241, 24,209 and 24,158. The Nifty 50 closed at 24,287.65 on Monday after declining for the fifth consecutive session. The index formed a bearish candle with a lower shadow, indicating buying interest at lower levels but continued underlying weakness.

The Nifty 50 has slipped below its short-term moving averages and the Bollinger Band midline, while the 50-day and 100-day exponential moving averages remain important support levels. The Relative Strength Index (RSI) has declined to 49.26. Meanwhile, the strengthening bearish crossover in the Moving Average Convergence Divergence (MACD), along with an expanding histogram for the third consecutive session, indicates gradually increasing bearish momentum in the near term.

Among stocks in focus, Indo-MIM reported a 31.6 per cent YoY increase in consolidated profit to Rs 240.1 crore from Rs 182.4 crore. Revenue increased 9.4 per cent YoY to Rs 1,218.7 crore from Rs 1,114.1 crore.

One 97 Communications, or Paytm, is also likely to remain in focus after Resilient Asset Management B.V., the parent and promoter entity of Vijay Shekhar Sharma, is reportedly looking to sell up to a 4.98 per cent stake in Paytm at a floor price of Rs 1,535.10 per share, according to a CNBC-TV18 report citing sources.

SPR Auto Technologies launched its qualified institutional placement (QIP) on August 17 with a floor price of Rs 4,438.20 per share. The company is reportedly looking to raise around Rs 1,000 crore through the issue.

Netweb Technologies India also opened its QIP on August 17 at a floor price of Rs 4,885.90 per share. The company could raise around Rs 1,200 crore through the issue, according to a CNBC-TV18 report citing sources.

Jyoti CNC Automation's Rs 1,020.65 crore capital investment proposal over five years at its Rajkot manufacturing facility has received approval under the Ministry of Electronics and Information Technology's Electronic Components Manufacturing Scheme. The company is eligible for a capital expenditure incentive of up to 25 per cent.

Manipal Health Enterprises signed a Business Transfer Agreement with Kindorama Healthcare to acquire the entire business operations and assets of Kinder Hospital in Bengaluru for Rs 130 crore.

Highway Infrastructure received a Letter of Award worth Rs 80.17 crore from the National Highways Authority of India for operations at Palayam Fee Plaza in Tamil Nadu.

For August 18, LIC, Manappuram Finance, SAIL and Bandhan Bank are under the F&O ban.

Institutional activity remained mixed on August 17. Foreign Institutional Investors were net sellers, offloading equities worth Rs 2,535.10 crore. Domestic Institutional Investors, meanwhile, remained strong buyers, purchasing shares worth Rs 5,101.46 crore during the session.

On Monday, Indian benchmark indices closed lower as investors remained focused on stock- and sector-specific opportunities amid better-than-expected Q1FY27 earnings and persistent geopolitical uncertainty. The Sensex declined 281 points, or 0.36 per cent, to close at 77,728.16, while the Nifty 50 fell 78 points, or 0.32 per cent, to settle at 24,287.65.

U.S. stock futures remained largely flat on Monday night after the major averages started the week lower. Continued U.S.-Iran tensions and inflation concerns pushed Treasury yields higher. Dow Jones Industrial Average futures declined 25 points, while S&P 500 and Nasdaq-100 futures edged marginally lower.

The subdued futures trend followed a weak Wall Street session, with oil prices gaining more than 2 per cent amid uncertainty surrounding the U.S.-Iran ceasefire, which expired on Monday.

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

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