Indian equity benchmarks are expected to open largely flat on Wednesday, August 19, according to The Times of India's live market blog, as elevated crude oil prices and rising global bond yields weigh on risk appetite. GIFT Nifty futures were at 24,202.5 around 7:19 am, indicating a muted start for the Nifty 50, which closed at 24,154.90 on Tuesday after a sixth straight losing session.
Key market levels at a glance
The previous session left both headline indices in the red, the blog reported. The table below summarises the levels cited in the report.
| Indicator | Level / Value | Change |
|---|---|---|
| Nifty 50 (Tuesday close) | 24,154.90 | -132.75 points (-0.55%) |
| Sensex (Tuesday close) | 77,235.46 | -492.70 points (-0.63%) |
| GIFT Nifty futures (7:19 am) | 24,202.5 | Indicates muted opening |
| Brent crude (Wednesday) | Moving towards $92/barrel | Fourth straight session gain |
Federal Reserve minutes and yield pressure
Investors will track the minutes of the US Federal Reserve's July policy meeting later on Wednesday for fresh clues on the interest-rate outlook, according to The Times of India. Global bond yields have climbed sharply, with the US 30-year Treasury yield hitting its highest level since 2007. The report flagged elevated US Treasury yields as a key risk for sustained foreign fund flows into Indian equities. The blog also noted persistent selling in IT and other rate-sensitive sectors, linking it to the rise in global yields.
Crude oil and geopolitical risk
Brent crude rose for a fourth straight session and moved towards $92 a barrel on Wednesday as uncertainty over the Strait of Hormuz continued to unsettle energy markets, the blog said. Key developments reported:
- US President Donald Trump said there were no talks with Iran and insisted the waterway was open.
- Tehran maintained that the Strait of Hormuz remains closed to shipping.
- Higher oil prices are a concern for India, as they could add to inflation and widen pressure on the country's import bill.
Markets are also tracking renewed uncertainty over the US-Iran conflict and its potential impact on energy supplies, The Times of India added.
Foreign institutional flows turn positive
Foreign institutional investors bought Indian equities worth Rs 1,652 crore on Tuesday, according to provisional exchange data, potentially marking their second buying session in six days. That inflow comes after foreign investors sold a record $25 billion worth of Indian shares so far this year, the report noted.
Elevated US Treasury yields and rising crude prices remain key risks for sustained foreign fund flows into Indian equities.
Sector pressure and the session ahead
Persistent selling in IT and other rate-sensitive sectors, along with elevated crude prices and weak global cues, has kept investors cautious, the live blog said. The Nifty 50 fell 132.75 points, or 0.55 per cent, to 24,154.90 on Tuesday, while the Sensex declined 492.70 points, or 0.63 per cent, to 77,235.46. The index will look to break a six-session losing streak.
According to the report, the following will be tracked through the session:
- Minutes of the US Federal Reserve's July policy meeting, due later on Wednesday.
- Developments in the US-Iran conflict and the Strait of Hormuz.
- Crude oil price movements and their impact on inflation and India's import bill.
- The sustainability of foreign institutional buying after Tuesday's Rs 1,652 crore inflow.
Sources:
