GIFT Nifty Trades Higher but Trims Early Gains Amid Mixed Global Signals
Early Surge Moderates as Global Sentiment Turns Cautious
India’s GIFT Nifty traded higher in early morning deals but pared a portion of its initial gains, reflecting a cautious undertone in global markets.After a strong rally of nearly 900 points, or about 4 percent, on Monday, the index gave up part of its momentum. As per the latest update at 08:20 am, GIFT Nifty was at 22,901.50, down 313.50 points or 1.35 percent for the day.
The pullback comes as optimism around a possible de escalation in Middle East tensions weakened, leading to a moderation in Asian market gains.
Asian Markets Trim Gains as Uncertainty Persists
Asian equities, which had earlier risen as much as 1.7 percent, also saw gains ease to around 0.8 percent. The shift mirrors fragile investor sentiment as geopolitical developments continue to evolve.Global Cues Remain Mixed Across Asset Classes
Global market signals remained uneven across asset classes.Gold prices extended their decline and are on track for their longest losing streak on record, indicating reduced safe haven demand in the near term.
Meanwhile, futures linked to the S and P 500 Index reversed early advances and slipped 0.6 percent. The decline followed a report indicating that US allies in the Persian Gulf may move closer to joining the conflict against Iran. Sentiment weakened further after an Iranian lawmaker ruled out negotiations with the United States.
Crude Oil Rebounds Amid Supply Concerns
Brent crude prices rose 3.5 percent to nearly 103.50 dollars per barrel. This follows a sharp 11 percent drop in the previous session after the United States announced a delay in planned strikes on Iran’s energy infrastructure.The Strait of Hormuz remained largely restricted, with only limited vessel movement reported through the critical shipping route.
Conflicting Signals on Military Developments
Geopolitical developments continued to send mixed signals to markets.Shortly after US President Donald Trump stated that talks had taken place with Iran and that planned strikes would be paused, Israel confirmed ongoing military operations in Tehran.
According to a Reuters report, Israeli forces were actively conducting strikes in the Iranian capital even as the United States indicated a temporary halt to its own military action.
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