Gift Nifty Trades 40 Points Lower; Indian Markets Likely To Open Cautiously; Crude Oil, US-Iran Tensions In Focus

The Gift Nifty was trading 39.5 points lower at 23,784.5 around 8:00 am on Tuesday, September 8, signalling a cautious start for Indian equity markets. Indian markets are likely to remain under pressure as rising crude oil prices and escalating tensions between the US and Iran continue to weigh on investor sentiment.

Brent crude moved above $97 a barrel after Iran threatened retaliation against any further attacks on energy infrastructure in the Gulf. Higher oil prices are a concern for India as they can increase the import bill, add to inflationary pressures and put pressure on the current account.

Ponmudi R, CEO of Enrich Money, said, “Indian equity markets are expected to remain cautious, with elevated crude oil prices continuing to dominate

the macro backdrop. Escalating geopolitical tensions have kept energy markets on edge, with WTI crude briefly touching the $93-per-barrel mark before holding in the $92-93 range. For India, persistently high oil prices remain a key risk, given their potential to widen the import bill, stoke inflationary pressures and strain the current-account balance.”

He added that the geopolitical backdrop remains fragile as the U.S.-Iran conflict shows few signs of easing. Uncertainty surrounding the Strait of Hormuz and the timing of its full reopening continues to underpin concerns over global oil supplies and broader market sentiment.

“Gold remained range-bound as investors weighed safe-haven demand arising from Middle East tensions against renewed expectations of tighter U.S. monetary policy. The tug-of-war between geopolitical risk and higher Treasury yields continues to define bullion’s near-term direction,” Ponmudi said.

He added that the Nifty is likely to remain under pressure, with the index continuing to trade in a weak technical setup after closing below the 23,800 mark in the previous session. A sustained move back above the 24,000 mark would be crucial to revive upward momentum. A decisive breakout above 24,200 could significantly strengthen bullish momentum and open the path higher.

“On the downside, 23,750–23,700 serves as the immediate support shelf, with 23,600 as the more critical floor; a break below this zone would expose the index to deeper weakness. Overall, the near-term technical outlook remains cautious to bearish,” Ponmudi said.

Global markets are also showing mixed signals. Japan’s Nikkei was largely flat, while South Korea’s Kospi gained more than 1%. US stock futures were slightly lower after Wall Street remained closed for the Labor Day holiday on Monday.

The US 10-year Treasury yield was around 4.79%, while traders continue to assess the outlook for US interest rates. The combination of higher crude prices, elevated bond yields and geopolitical uncertainty is keeping investors cautious.

Gold gained around 0.5% as investors continued to seek safe-haven assets amid Middle East tensions. However, expectations of tighter US monetary policy and higher Treasury yields are limiting gains in the precious metal.

In the previous session, the Sensex fell 382.62 points, or 0.50%, to 76,132.81, while the Nifty 50 declined 118.55 points, or 0.50%, to close at 23,779.15. Selling was seen across metal, IT and oil and gas stocks as investors reacted to rising crude prices, worsening US-Iran tensions and concerns over US interest rates.