The market is poised for a strong comeback as GIFT Nifty registered a significant surge on Tuesday morning. The index climbed by more than 1.1 percent, trading at 24,139, indicating substantial positive momentum for Indian equities when trading resumes. This breakout signals a potential rebound for the Nifty 50, which could aim to reclaim the 24,000 mark after declines seen earlier in the week.
The positive signal emerges amidst the holiday closure for Baba Saheb Ambedkar Jayanti, with trading suspended until Wednesday. Investors are keenly watching global developments as improving international sentiment and easing energy prices have lifted overall risk appetite.
GIFT Nifty's Strong Performance Signals Rebound
GIFT Nifty surged 261 points, achieving a gain of 1.1 percent during morning trading. This sharp increase sets a highly bullish tone for the opening session once physical markets reopen.The strength in GIFT Nifty is a dramatic turnaround compared to Monday’s session. On Monday, domestic benchmarks experienced a notable decline, with the Sensex falling over 700 points and the Nifty slipping more than 200 points. These losses were primarily attributed to concerns surrounding the breakdown of US-Iran talks and a sharp spike in crude oil prices.
Global Cues Lift Sentiment, Oil Prices Retreat
A major catalyst for the current bullish sentiment is the retreat in crude oil prices. Brent crude, in particular, has dipped significantly, falling by about 2.7 percent to around $96.66 a barrel, slipping below the critical $100 mark. This decline eases systemic concerns regarding inflation and input costs for oil-importing economies like India.Furthermore, global geopolitical tensions appear to be cooling down. Investor confidence improved following reports that negotiations between the US and Iran may continue, despite earlier breakdowns. Positive comments from US President Donald Trump regarding a potential deal have helped calm fears of prolonged supply disruptions.
Asian markets mirrored this positive mood, with Japan’s Nikkei and South Korea’s Kospi both advancing by more than 2 percent. The broader Asia-Pacific index also gained about 1 percent. US markets finished higher overnight, with the S&P 500 and Nasdaq climbing over 1 percent each.
Mixed Domestic Flows and Key Outlook Triggers
While global signals are strongly bullish, domestic institutional flows in the previous session remained mixed. Foreign investors continued to act as net sellers, offloading equities worth Rs 1,983 crore. However, domestic institutional investors provided critical support through net purchases totaling Rs 2,432 crore.Looking ahead, markets are likely to attempt to recoup recent losses, supported by softer crude pricing and the overall improved global risk sentiment. However, experts suggest that the key triggers for sustained upward movement will remain the geopolitical developments and continued movements in oil prices.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.