Nifty Poised for Strong Opening Following Global Rally and Crude Price Drop

Indian equity markets are set for a positive session on Tuesday, August 4, 2026, buoyed by a robust performance on Wall Street. The Dow Jones Industrial Average reached a new record high, while the Nasdaq Composite surged 2.13% to 25,913.90 points, providing a strong tailwind for domestic sentiment. Gift Nifty indicates a positive opening, reflecting the optimism seen across Asian markets.

A significant factor driving this sentiment is the sharp decline in global energy costs. US WTI crude fell 5.1% to $80.34 per barrel, and Brent crude dropped 7.0% to $83.77 per barrel. This reduction in energy prices is expected to ease inflationary pressures, particularly benefiting oil-importing sectors and manufacturing firms that have been grappling with high input costs throughout the current fiscal year.

The overnight Nasdaq rally is expected to favor IT stocks at the opening bell, as investors look to capitalize on the tech-led global recovery. Meanwhile, the India VIX, currently at 11.98, suggests a marginal rise in volatility, indicating that while the trend is positive, investors remain cautious. The session will likely be dominated by the performance of the Nifty IT index as it attempts to sustain its recent momentum.