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Informist, Monday, Aug. 31, 2026

By Adhithya Aji

MUMBAI – Benchmark indices are expected to open lower Monday after the US launched strikes against Iran, the first military action in a month. Tehran retaliated with counterstrikes, heightening tensions in West Asia. Crude oil prices gained traction after this, touching $90 per barrel. Analysts view higher crude prices as negative for equity markets, as India remains a net importer of energy. Global peers were also lower, with all Asian indices opening lower Monday, while US indices ended lower Friday.

The US launched two missile attacks on Larak Island in southern Iran Sunday. Following this, Iran launched strikes targeting two US bases in Jordan. This is the first act of violence between the US and Iran since late July, Al Jazeera reported. "Aggression and crimes will not solve the enemy's desperation in attempting to weaken the Islamic Republic's control over the Strait of Hormuz, and every attack will be met with even more devastating responses," the news agency reported, citing an Islamic Revolutionary Guard Corps statement.

Crude oil prices rose amid renewed tensions in West Asia, on concerns about global oil supply. At 0738 IST, November Brent crude futures were up over 2% to $90.31 per barrel. Even though crude oil fell for a few sessions last week, the decline was not enough to ease pressure on Indian equity markets, analysts said. They peg comfortable crude levels at around $75 to $80 per barrel. The current rise in energy prices is likely to weigh on investor sentiment. 

Foreign institutional investors were net sellers on Friday, selling equity worth INR 50.40 billion. The US bond yields are expected to stay high on sticky inflation and the absence of large buyers in US government security markets, according to Emkay Institutional Equities. "Sustained higher US risk-free rates (about 5%), when coupled with equity risk premium, India risk premium, and currency depreciation, would result in global (and US) investors seeing about 15% return as the floor for investing in Indian equities," the brokerage said in a report. Emkay said in order to attract foreign investors, India should showcase longer visibility of higher growth, rather than earnings resilience.

At 0756 IST, the September futures contracts of GIFT Nifty were 0.2% lower at 24225. The Nifty 50 was consolidating around 24025-24380 for the past 10 trading sessions, according to Vipin Kumar, senior technical and derivatives analyst at Globe Capital Market. "A break on either side of this range is essential for the next short-term directional move in that direction," Kumar said. If the 50-stock-index moves above the 24440 mark, it could touch 24700-24800 spot levels, he added. Monday, the MSCI index revision will be implemented after the closing trade, and the changes will take effect on Tuesday.      

On the stocks front, two heavyweights are set to be in focus, Reliance Industries and HDFC Bank. Reliance's Jio Platforms received the Securities and Exchange Board of India's approval Friday for its initial public offering. Meanwhile, HDFC Bank's Managing Director and Chief Executive Officer Sasidhar Jagdishan has decided not to seek reappointment. He is set to retire on Oct. 26. Nuvama Institutional Equities trimmed its target price of HDFC Bank's stock by nearly 15% to INR 875, and maintained its 'buy' call. "We expect near-term stock weakness until succession clarity emerges," the brokerage said in a report.

End

US$1 = INR 95.38

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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