GIFT Nifty Jumps 170 Points as Wall Street Hits Record Highs; Investors Await RBI Policy Cue

GIFT Nifty Jumps 170 Points as Wall Street Hits Record Highs; Investors Await RBI Policy Cue​

Indian stock markets are poised for a strong open on Wednesday, with pre-market indicators suggesting bullish momentum across the board. The jump in GIFT Nifty signals that both the Sensex and Nifty 50 are set to rise sharply, following global market rallies and easing geopolitical tensions. Investors have booked profits ahead of the Reserve Bank of India's critical monetary policy decision later today.

Global Markets Soar on Optimism as AI Earnings Drive Record Highs​

Asian equities extended the upward trend globally, fueled by optimism surrounding technology earnings and renewed hopes regarding the Strait of Hormuz. The Dow Jones Industrial Average and the S&P 500 closed at fresh all-time highs in the United States. This surge was supported by upbeat corporate earnings and improving geopolitical sentiment.

The Nasdaq Composite jumped 2.59 percent, while the S&P 500 advanced a robust 1.79 percent. The Dow climbed 1.71 percent, driving global sentiment higher. In Asia, Japan's Nikkei 225 rose 3 percent, and South Korea's Kospi gained 3.4 percent.

GIFT Nifty Signals Firm Start for Indian Benchmarks​

GIFT Nifty is indicating a strong start for the domestic indices. Trading at 24,745 around 8 am, it was up 165 points or 0.67 percent, suggesting the Nifty 50 could open significantly above Tuesday's closing level of 24,614.90.

In contrast, both Indian benchmark indices closed lower on Tuesday after a four-session winning streak. The Sensex fell 210.08 points (0.27 percent) to 78,428.95. Similarly, the Nifty declined by 159.40 points (0.64 percent) settling at 24,614.90.

Crude Oil Prices Tumble Amid De-escalation Hopes​

Crude oil prices continued their decline after hopes of progress in resolving the US-Iran conflict eased fears of sustained supply disruptions. Brent crude slipped 0.4 percent to $79.02 a barrel. US West Texas Intermediate crude also eased, dropping 0.5 percent to $75.35.

The fall in oil prices has provided support to risk appetite across global markets. This decline is one of the key drivers fueling optimism in Asian equities and stock rallies worldwide.

Expert Outlook: Focus Shifts to RBI Policy Decision​

Ponmudi R, CEO of Enrich Money, noted that market sentiment has been strengthened by the potential US-Iran agreement and the corresponding drop in crude oil prices. Sustained buying from both foreign and domestic institutional investors continues to underpin a constructive near-term outlook for the Indian equity markets.

However, investor attention is now squarely focused on the Reserve Bank of India's Monetary Policy Committee decision later today. Market participants will meticulously monitor the central bank’s commentary regarding inflation, growth, liquidity, and its broader policy stance.

Institutional Flows Show Mixed Signals Remain Supportive​

Foreign institutional investors (FIIs) maintained their buying streak for the sixth consecutive session on Tuesday, investing Rs 2,446 crore into Indian equities. While domestic institutional investors (DIIs) registered a net sell, offloading nearly Rs 1,000 crore, the substantial foreign inflows provided necessary support to bolster the broader market performance.

Ponmudi suggests that despite the recent profit booking, the Nifty maintains a constructive technical structure. He projects that a sustained move above 24,600 could reinforce bullish momentum, potentially targeting the 24,800-25,000 zone. The near-term outlook remains cautiously positive, with immediate support expected in the 24,400-24,300 region.