GIFT Nifty Jumps 150 Points as Easing Rate Fears Fuel Rally Ahead of Mixed Global Markets

GIFT Nifty Jumps 150 Points as Easing Rate Fears Fuel Rally Ahead of Mixed Global Markets​

GIFT Nifty surged by over 150 points in pre-market trading on Friday morning. This strong opening signal suggests that Indian benchmark indices, Sensex and Nifty, are set for solid gains. The momentum is buoyed by softened expectations regarding near-term US interest rate hikes, coupled with stable crude oil prices and an improved global risk appetite.

The sentiment shift arrived despite continued pressure in the technology sector, where semiconductor stocks registered noticeable weakness across global markets. Indian benchmark indices closed higher for a second consecutive session on Thursday, driven by broad-based buying activity across various sectors.

Market Performance Snapshot: Sensex and Nifty Extend Gains​

Indian equity markets showed strong resilience on Thursday, with both major indices climbing significantly. The Sensex rose 579.48 points, marking an increase of 0.75 percent, settling at 77,502.12. Correspondingly, the Nifty gained 169.85 points, or 0.71 percent, closing the session at 24,175.70.

The bullish trend is anticipated to continue as GIFT Nifty was trading at 24,411 around 8 am. This reading reflects a rise of 153 points, or 0.63 percent from the previous close, reinforcing expectations of further gains for Sensex and Nifty.

Global Market Temperament: Chip Weakness Meets Rate Relief​

Wall Street closed on a mixed note following softer-than-expected US jobs data. This news reduced concerns over an imminent Federal Reserve rate hike. The Dow Jones Industrial Average climbed 1.14 percent to a record closing high, extending its winning streak to four sessions.

Conversely, the Nasdaq Composite fell 0.80 percent after sharp declines in semiconductor stocks offset gains in other sectors. While the S&P 500 remained relatively stable, significant pressure was observed in tech components globally. The Philadelphia Semiconductor Index dropped 5.4 percent for the second straight day.

Oil Prices Stabilize as Geopolitical Concerns Ease​

Crude oil prices managed a slight increase but remained near multi-month lows. This stability is directly linked to optimism surrounding progress made in US-Iran negotiations, which eases concerns about global supply disruptions. Brent crude traded around 0.2 percent higher, while US West Texas Intermediate was recorded at $68.8 per barrel.

These benchmarks had touched their lowest levels since the onset of the Middle East conflict earlier this year. Ponmudi R, CEO of Enrich Money, noted that this progress has significantly reduced energy supply worries for the market.

Expert View: Technical Outlook and Investor Flows​

Ponmudi R from Enrich Money added that softer US jobs data has tempered expectations regarding near-term monetary tightening by the Federal Reserve. However, he cautioned that markets remain highly sensitive as foreign institutional investors maintain a cautious stance despite macroeconomic improvements.

Technically, he observed that Nifty has maintained its constructive structure after reclaiming the 24,000 level. The immediate resistance lies in the 24,200-24,250 zone, with sustained breakout potential aiming for the 24,400-24,450 range. Key support remains at 24,000 and the 23,900-23,800 zone.

Institutional Buying Trends Across Markets​

Institutional flows in the previous session showed divergence. Foreign institutional investors recorded net selling for a fourth consecutive day, offloading equities worth Rs 311 crore. In contrast, domestic institutional investors extended their buying streak to eight straight sessions, purchasing shares valued at Rs 1,784 crore.

Asian markets traded with mixed sentiment on Friday as investors balanced the improving interest-rate environment against continued pressure in the semiconductor sector. MSCI’s broadest index outside Japan was marginally higher after two declining days.