Sensex, Nifty Poised for Positive Opening as GIFT Nifty Gains Despite Asian Market Slump

Sensex, Nifty Poised for Positive Opening as GIFT Nifty Gains Despite Asian Market Slump​

Indian benchmark indices are expected to open with a marginal uptick on Thursday, as the GIFT Nifty indicates a positive start despite widespread weakness across Asian markets. Investors are currently navigating a complex landscape of supportive Wall Street cues set against rising crude oil prices and escalating geopolitical tensions in the Middle East.

The GIFT Nifty was trading at 24,090 around 8:00 am, representing an increase of 48 points or 0.2 percent. This suggests that the Nifty 50 could open slightly above Wednesday's closing level of 24,078.50.

This positive signal follows a muted session on Wednesday where Indian markets gave up most of their early gains. The Sensex finished at 77,185.43, up 130.49 points or 0.17 percent, while the Nifty closed at 24,078.50, gaining 26.45 points or 0.11 percent.

Wall Street Gains Contrast with Asian Tech Sell-Off​

US equities ended on a high note overnight as investors responded to softer than expected inflation data and robust quarterly earnings from major banks. The Dow Jones Industrial Average rose 0.29 percent, while the S&P 500 advanced 0.38 percent and the Nasdaq Composite climbed 0.62 percent.

Investors notably rotated into large-cap technology, retail, and travel stocks to counteract persistent weakness in semiconductor shares. This inflation data reinforced expectations that the United States Federal Reserve may not pursue aggressive monetary tightening in the immediate future.

Conversely, Asian markets faced a sharp decline on Thursday due to renewed pressure on semiconductor stocks. This sell-off occurred ahead of Taiwan Semiconductor Manufacturing Co.'s earnings, hitting regional markets that have high exposure to the chip sector.

Japan's Nikkei dropped 3 percent and South Korea's KOSPI plummeted 6.3 percent, led by sharp declines in Samsung Electronics and SK Hynix. While Taiwanese equities also saw a decline, Hong Kong's Hang Seng bucked the regional trend with gains of around 1.2 percent.

Crude Oil Prices Surge Amid Rising Middle East Tensions​

Crude oil prices have extended their rally for a fourth consecutive session following fresh US strikes on Iranian military installations. These actions have heightened concerns regarding potential supply disruptions through the Strait of Hormuz.

Brent crude futures rose to approximately $85.30 per barrel, while US West Texas Intermediate traded near $80 per barrel. Oil prices have appreciated by roughly 12 percent this week, maintaining levels near one-month highs as regional hostilities persist.

Expert Outlook and Technical Support Levels​

Ponmudi R, CEO of Enrich Money, noted that while softer US inflation and strong earnings support global sentiment, gains may remain capped. He highlighted that elevated crude oil prices, a weaker rupee, and intensifying tensions between the United States and Iran are significant headwinds.

The expert pointed out that the IMF has warned that prolonged disruptions in the Middle East could jeopardize global energy supplies and economic growth. However, he noted that the implementation of the India-UK trade agreement offers a constructive long-term backdrop for the domestic economy.

Technically, the Nifty maintains its position above the crucial 24,000 level, which keeps the broader recovery structure intact. The immediate resistance remains at 24,200, where a sustained move could unlock bullish momentum toward the 24,300 to 24,400 zone.

On the downside, 24,000 serves as a key support level. A decisive break below this mark could trigger renewed selling pressure moving toward the 23,900 to 23,800 region.

Institutional Investor Activity Flows​

Foreign institutional investors (FIIs) remained net sellers on Wednesday, offloading Indian equities worth ₹735 crore. This move comes as market participants weigh international sentiments against domestic stability.

In contrast, domestic institutional investors (DIIs) continued to provide a cushion for the market. DIIs purchased shares worth ₹704 crore, extending their buying streak to six consecutive sessions.