Indian stock markets are set for a positive start today after Wednesday's 2% drop. The GIFT Nifty indicates a recovery of over 100 points, supported by gains in Asian semiconductor stocks. Despite concerns over rising crude oil prices and Middle East tensions, institutional buying remains a key support for the indices.
Indian equity markets are looking to regain momentum on Thursday, July 9, 2026, following a steep 2% decline in the Sensex and Nifty during the previous session. GIFT Nifty futures point to a gap-up opening, trading over 100 points higher, as investors look past Wednesday's broad-based sell-off.
The recovery aligns with a positive trend in other Asian markets, where semiconductor companies are seeing a rebound. This buying interest in tech-heavy stocks has provided a cushion for broader indices across the region. However, the market remains cautious due to ongoing geopolitical developments in the Middle East and the resulting impact on energy supplies.
Impact of Energy Costs and Geopolitics
Crude oil prices continue to be a primary area of focus for market participants. Brent crude remains elevated above $79 per barrel, driven by concerns over potential shipping disruptions through the Strait of Hormuz. For India, a net importer of energy, higher oil prices often increase inflationary pressure and can weigh on the rupee. The domestic currency is currently hovering near a one-month low against the US dollar, which remains a factor for foreign investors to consider.
Institutional Support Remains Visible
Despite the recent volatility, institutional interest has acted as a stabilizing force. On July 8, foreign institutional investors remained active, recording their fourth consecutive session of net buying with an investment of approximately ₹1,962 crore in Indian equities. Domestic institutional investors also provided support, with a net purchase of ₹790 crore. This continued inflow from both foreign and domestic players suggests a level of confidence in the underlying market despite the short-term geopolitical stress.
Technical Outlook and Monitorables
From a technical perspective, market participants are closely watching the 24,000 level on the Nifty, which has emerged as an immediate resistance point. On the downside, the 23,800 level is considered a critical support area. A break below this level could potentially trigger further selling pressure. Investors will likely track the movement of crude oil prices and any further updates regarding the situation in the Middle East, as these factors are currently the primary drivers of global risk sentiment. Monitoring how the Nifty sustains early session gains will be important to determine if this rebound has lasting momentum or if it is merely a relief rally.