Indian equity benchmarks are expected to open largely flat on Tuesday, with GIFT Nifty indicating a cautious start amid renewed geopolitical uncertainty surrounding the United States Iran negotiations and the reopening of the Strait of Hormuz. GIFT Nifty was trading at 24,611 around 7:45 am, down 20 points or 0.08 percent, suggesting limited movement from the Nifty 50's previous close of 24,583.8.

Indian equities ended almost unchanged in the previous session following a volatile trading day. The Sensex gained 43.3 points or 0.06 percent to close at 78,542.4, while the Nifty 50 advanced 13.2 points or 0.05 percent to 24,583.8. The benchmarks struggled to sustain their intraday gains as investors remained cautious amid global uncertainties.

Crude oil prices extended their sharp rebound on Tuesday as negotiations between the United States and Iran over a potential peace agreement and the reopening of the Strait of Hormuz faced fresh hurdles. Brent crude climbed to around $88 a barrel, while West Texas Intermediate crude rose to $82.45, with both benchmarks reaching their highest levels since July 31. Oil prices had already gained around 5 percent on Monday.

The latest developments have increased concerns over the duration of disruptions around the strategic waterway, which is critical for global energy supplies. US President Donald Trump's response to Iranian conditions for a peace agreement has further complicated negotiations, keeping investors focused on developments around the Strait of Hormuz and their potential impact on crude prices and inflation.

Asian markets were mixed on Tuesday as investors assessed the geopolitical situation and awaited US inflation data for signals on the Federal Reserve's future interest rate policy. MSCI's broadest index of Asia Pacific shares outside Japan was up 0.2 percent, while South Korea's Kospi gained 0.3 percent. Japanese markets remained closed for a holiday.

US equity futures edged higher after Wall Street ended lower in the previous session. Nasdaq futures were up 0.28 percent, while S&P 500 futures gained 0.1 percent. On Monday, the S&P 500 declined 0.06 percent, the Nasdaq Composite fell 0.32 percent and the Dow Jones Industrial Average slipped 0.11 percent. The decline followed the S&P 500's record close on Friday, with weakness in semiconductor stocks also weighing on sentiment.

Market participants are also awaiting US inflation data due this week, which could provide additional clues on the Federal Reserve's interest rate trajectory. Higher energy prices could add to inflation concerns and influence expectations around the pace of future monetary policy easing.

Ponmudi R, CEO of Enrich Money, said US Iran negotiations appeared to have entered a more complicated phase, creating uncertainty over the timing and durability of any potential agreement. He expects markets to remain driven by geopolitical headlines until greater clarity emerges, limiting investors' willingness to take aggressive directional positions.

Technically, the Nifty is expected to remain range-bound between 24,500 and 24,700 in the near term. The 24,600 to 24,700 zone remains an important resistance area, and a sustained breakout above this range could open the way towards 24,800 to 25,000. On the downside, 24,500 remains the immediate support level, while a decisive break below it could expose the index to 24,400 to 24,300.

Institutional flows provided some support to Indian equities in the previous session. Foreign institutional investors extended their buying streak for a second consecutive session, purchasing equities worth nearly Rs 2,000 crore. Domestic institutional investors, however, ended a three-session buying streak and sold equities worth around Rs 1,290 crore.

Overall, Indian markets are likely to remain sensitive to movements in crude oil, developments around the Strait of Hormuz, US inflation data and global risk sentiment. The immediate market direction is expected to remain dependent on whether geopolitical tensions ease or lead to further pressure on energy prices.