Indian benchmark indices Sensex and Nifty are likely to open lower on Tuesday, with GIFT Nifty pointing to a weak start as investors track losses across major Asian markets and a decline in US technology stocks. GIFT Nifty was trading at 24,154 around 7:50 am, down 57 points or 0.24 percent.

Indian equities started the week on a subdued note on Monday. The Sensex declined 171.72 points or 0.22 percent to close at 77,369.11, while the Nifty fell 32.95 points or 0.14 percent to 24,219.05. Both indices recovered partially from their intraday lows.

Asian markets remained under pressure on Tuesday as investors assessed Washington's latest measures against Iran and remained cautious ahead of key US economic data and corporate earnings later in the week. MSCI's broadest index of Asia Pacific shares outside Japan declined 0.5 percent, while Japan's Nikkei fell 0.9 percent. South Korea's Kospi dropped 2.7 percent.

Global sentiment received some support from the bond market as US Treasury yields eased from recent highs. The decline followed reports that the US Treasury Department could use its cash account to support increased debt buybacks. Elevated US Treasury yields have been a key source of pressure for global equities in recent weeks.

Overnight, US equities ended mixed to negative, with technology stocks leading the decline. The Nasdaq Composite fell 0.76 percent to 25,980.19, while the S&P 500 declined 0.28 percent to 7,652.86. The Dow Jones Industrial Average outperformed, rising 0.26 percent to 53,417.16. US equity futures were largely muted, with Nasdaq futures down 0.08 percent and S&P 500 futures broadly unchanged.

Investors are positioning ahead of Nvidia's earnings and a closely watched US inflation report due later this week. The developments could influence expectations for technology stocks, bond yields and the Federal Reserve's interest rate trajectory.

Crude oil prices remained relatively stable on Tuesday after falling more than 2 percent in the previous session. Brent crude futures slipped 0.1 percent to $92.16 a barrel, while US West Texas Intermediate crude was broadly unchanged at $85.02 a barrel. The moderation in oil prices provides some relief for oil-importing economies such as India.

Geopolitical risks remain in focus after US Treasury Secretary Scott Bessent announced an expansion of sanctions targeting Iran's economic lifeline. The measures seek to pressure countries to sever business ties with Tehran or risk losing access to the dollar-based financial system. Despite the tougher sanctions, crude prices did not see a renewed spike.

Domestic institutional flows continued to provide support to Indian equities despite the weakness in benchmark indices. Foreign institutional investors turned net buyers on August 24, purchasing Indian equities worth Rs 1,181 crore. Domestic institutional investors extended their buying streak for a 10th consecutive session, investing another Rs 2,493 crore.

Sustained DII buying and the return of FII purchases could provide a cushion for Indian equities, although global risk sentiment, US technology stocks, crude oil prices, US bond yields and developments related to Iran are likely to remain key market drivers.