Indian markets are set for a positive start today, with GIFT Nifty indicating a relief rally following a sharp recovery in US technology stocks. Investors are expected to find some comfort in strong FII inflows, though rising Brent crude prices near $95 per barrel continue to pose a risk to market sentiment.
The Indian equity market is poised for a potential relief rally today as early indicators from the GIFT Nifty suggest a positive opening. This expected bounce follows a session of recovery on Wall Street, where technology stocks led gains driven by strong AI-related earnings. Notably, Dell Technologies saw a 15.8% surge, offering a sentiment boost to global investors that is expected to filter into the local IT sector.
This uptick comes after a challenging stretch for domestic indices, which have recorded three consecutive days of losses. In the previous session, the Nifty 50 slipped below the psychological 24,000 mark, while the Sensex closed at 76,570.35, down by over 370 points. Widespread selling affected major heavyweights, with the Auto and Information Technology indices facing the brunt of the pressure. Large-cap stocks such as Infosys, Mahindra & Mahindra, and State Bank of India acted as significant drags on the broader market performance.
While the US market recovery provides a much-needed buffer, domestic investors continue to face macroeconomic headwinds. Brent crude oil prices remain elevated near $95 per barrel, fueled by ongoing geopolitical tensions near the Strait of Hormuz. These high energy costs are a critical monitorable for investors, as they threaten to increase inflationary pressure and potentially squeeze profit margins for companies in sectors like automotive and consumer goods.
Despite the prevailing volatility, there is a silver lining in the form of capital flows and currency stability. Foreign Institutional Investors (FIIs) remained active supporters of the market, net buying shares worth ₹6,688.37 crore in the previous session. Additionally, the Indian Rupee displayed resilience against the US dollar, appreciating by 22 paise to close at 94.73. This influx of foreign capital may act as a stabilizing force if market volatility persists.
As trading resumes, the key monitorable for the Nifty 50 will be its ability to reclaim and sustain levels above the 24,000 threshold. Market participants are likely to watch technical resistance around the 24,050–24,200 range, while keeping a close eye on any further developments regarding crude oil prices and global geopolitical shifts.