GIFT Nifty Signals Mild Rally as Focus Shifts to US Fed Meet After Geopolitical Tensions Ease

GIFT Nifty Signals Mild Rally as Focus Shifts to US Fed Meet After Geopolitical Tensions Ease​

Indian benchmark indices Sensex and Nifty are expected to open mildly higher on Tuesday, driven by easing geopolitical concerns and lower crude oil prices. The sentiment is reflected in the GIFT Nifty trading at 23,958, which was up 67 points or 0.28 percent. This optimism comes after a strong performance on Monday as both indices saw gains for two consecutive sessions.

Global Markets React to US-Iran Preliminary Agreement​

The initial enthusiasm surrounding the preliminary agreement between the United States and Iran is now being tempered by market participants. While the agreement has been endorsed by leaders, details regarding its framework and timeline have not yet been made public. This signals that a permanent truce remains unfinalized.

Despite this caution, the geopolitical shift provided support to risk assets globally. The improved outlook for energy supply disruptions benefited markets overnight. On Wall Street, oil prices rebounded modestly following the sharp selloff seen on Monday. Brent crude futures rose 0.3 percent to approximately $83.4 per barrel.

Asian Equities Turn Cautious Amid Rate Hike Anticipation​

Asian equities experienced mixed trading on Tuesday after a strong rally in the previous session. MSCI's broadest index of Asia-Pacific shares outside Japan showed little change, while Japan’s Nikkei 225 slipped 0.3 percent. Investors are keenly awaiting more clarity on the U.S.-Iran framework and upcoming central bank decisions.

The market mood appears to be recalibrating as attention pivots toward a packed schedule of global financial meetings. Specifically, investors will closely monitor the US Federal Reserve’s policy decision scheduled for Wednesday. The Bank of Japan is also expected to deliver a rate increase during its announcement later today.

Institutional Flows and Technical Outlook for Nifty​

Foreign institutional investors (FII) were active on Tuesday, purchasing equities worth Rs 200 crore, snapping a 13-session selling streak. Domestic institutional investors (DII) remained strongly supportive, buying equities amounting to Rs 3,189 crore during the session. This sustained domestic interest suggests continued support for the Indian market.

Ponmudi R, CEO of Enrich Money, stated that the Nifty's immediate technical hurdle is the 24,000 mark. For momentum to strengthen and target the 24,200-24,400 zone, a sustained move above this critical level is necessary. However, key support remains firmly in place around the 23,800 level.

Overnight US Markets Rally on Lower Energy Prices​

Wall Street continued its strong rally as investors reacted favorably to lower oil prices and cooling inflation concerns. The Dow Jones Industrial Average climbed a solid 0.92 percent, reaching a record closing high. The S&P 500 gained 1.65 percent, while the Nasdaq Composite surged significantly by 3.07 percent.

Technology stocks notably led these gains on Wall Street. This surge highlights how lower energy costs are improving the outlook for both inflation and interest rate expectations across global financial markets.