GIFT Nifty Surges Over 100 Points; Global Rally Fueled by AI Optimism Despite Middle East Tensions

GIFT Nifty Surges Over 100 Points; Global Rally Fueled by AI Optimism Despite Middle East Tensions​

Indian equity indices are poised for a firm start on Friday following strong global cues, with GIFT Nifty signaling immediate gains. The rally was driven by renewed confidence in technology stocks and easing crude oil prices, allowing investors to pivot from geopolitical fears toward the earnings outlook of Artificial Intelligence (AI).

GIFT Nifty traded at 24,116 around 7:45 am, marking a positive indication for the market after closing on Thursday. The index was up 121.5 points or 0.51 percent from its close of 23,962.8. Prior to this morning's uplift, the Sensex had closed at 76,741.8, gaining 238.2 points (0.3 percent), while Nifty finished at 23,962.8, rising by 80.8 points.

Global Wall Street and Asian Markets Rally on Tech Strength​

Global markets delivered substantial support for Indian equities after a volatile previous session. The rally was led strongly by technology and semiconductor sectors across the US.

The Nasdaq Composite climbed 1.3 percent, while the S&P 500 advanced 0.81 percent and the Dow Jones Industrial Average added 0.27 percent. This robust performance highlights renewed confidence that AI-related spending will continue to drive earnings across the technology sector.

Asian markets mirrored this global optimism, with chipmakers performing strongly. Japan's Nikkei gained 1.8 percent, and South Korea's Kospi jumped 2.4 percent as Samsung Electronics and SK Hynix both rose by around 3 percent. MSCI's Asia-Pacific index outside of Japan was up 0.76 percent.

Oil Prices Ease Despite Geopolitical Risks​

Oil prices edged lower on Friday, retreating from sharp losses in the preceding session, though they remain on track for weekly gains. Brent crude traded near $76.2 a barrel, and US West Texas Intermediate crude hovered close to $72 a barrel.

The decrease reflected investor concerns that higher inflation could potentially weaken future demand, offsetting the existing worries about continued disruptions around the Strait of Hormuz. Although military exchanges have delayed the full resumption of strategic shipping routes, current crude prices are significantly below the conflict highs recorded earlier.

Market Flows and Institutional Investor Activity​

Foreign institutional investors (FIIs) reversed their four-session buying streak on Friday, selling Indian equities worth Rs 532 crore during the session. Conversely, domestic institutional investors (DIIs) provided consistent support to the market, purchasing equities valued above Rs 2,000 crore.

Expert Outlook: Sentiment and Technical Levels Guide Near-Term Trends​

Analysts suggest that improving global sentiment is expected to bolster Indian equities, even amidst continued technical-level discussions between the United States and Iran. The strong overnight performance of US semiconductor stocks has been noted as a major positive cue for Asian markets.

However, one view highlights that Nifty still maintains a cautious near-term structure after failing to sustain above its immediate resistance zone. The 24,100-24,200 region is key resistance, and a solid breakout above this band could boost sentiment toward the 24,400 level.

On the downside, the market maintains crucial support at 23,900, followed by 23,800. A decisive break below 23,800 is expected to accelerate selling pressure towards the 23,600 level.