Nifty Suggests Flat Open for Sensex, Amid Mixed Global Cues and Elevated Crude Prices

Indian Markets Expected to Open on a Muted Note

The Indian markets are likely to open on a subdued note on Tuesday, with GIFT Nifty up just 37 points or 0.15 percent at 24,082 in early trade. This cautious opening signals a flat-to-slightly positive start after Monday's rebound.

The cautious opening is a reflection of the mixed global cues. Crude oil prices, though off recent highs, continue to trade at elevated levels. As of the last update, Brent crude was trading at $113.85 per barrel, down about 0.5 percent, following a sharp surge in the previous session amid renewed tensions in the Strait of Hormuz. US WTI crude fell 1.3 percent to $105.03. The persistence of oil above the $100 mark poses inflation risks and caps upside for equities.

Global Markets Trading Lower

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Asian markets traded lower in early deals, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.3 percent. Australian equities slipped 0.4 percent in thin trade. Markets in Japan and South Korea remained shut for holidays. US futures also pointed to a subdued start, with S&P 500 and Nasdaq futures down around 0.1 percent each.

Wall Street Equities End Lower

On Wall Street, equities ended lower overnight as geopolitical tensions escalated. The Dow Jones Industrial Average fell 1.13 percent to 48,941.90, the S&P 500 declined 0.41 percent to 7,200.75, and the Nasdaq Composite slipped 0.19 percent to 25,067.80. The indices retreated from record highs as concerns over the Strait of Hormuz overshadowed earnings optimism.

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Indian Market Sentiment

Back home, investors will react to key state election outcomes, particularly in West Bengal. The BJP unseated the incumbent government, marking a significant political shift. While state elections typically have limited long-term market impact, any perceived policy or governance implications could influence near-term sentiment.

Institutional Flows Offer Support

Institutional flows offer some support to the market. Foreign institutional investors turned net buyers on Monday after nine straight sessions of selling, with inflows of Rs 2,835 crore. Domestic institutional investors extended their buying streak with purchases worth Rs 4,764 crore.

Technical Analysts Expect Range-Bound Market

Technical analysts expect markets to remain range-bound in the near term, with resistance for the Nifty seen around 24,300-24,400 and support near the 23,800 level. With crude oil volatility, geopolitical developments, and global cues still dominating the narrative, market direction is likely to remain highly news-driven through the session.