Indian benchmark indices are set for a positive start today, with GIFT Nifty at 23,515 reflecting optimism from a US tech-led rally. Domestic institutional investors continue to provide a buffer against foreign sell-offs.
Indian equity markets appear set for a positive opening today, taking cues from a strong performance in international tech stocks. The GIFT Nifty, a key indicator for the morning start, is hovering near 23,515, signaling confidence among market participants. This follows a bullish session in the United States, where the Nasdaq index hit new highs, driven largely by high demand for companies linked to artificial intelligence and semiconductor manufacturing.
The global sentiment has rippled across Asia, where regional markets are seeing gains. The Kospi index, for instance, climbed over 2 percent, led by major technology firms like Samsung Electronics and SK Hynix. For Indian investors, this trend in tech-heavy indices often influences sentiment in the local information technology sector, which tends to mirror global developments in hardware and software demand.
Domestic institutional investors remain a critical pillar for the local market, helping to absorb volatility. Data from the previous session shows that domestic institutional investors purchased equities worth ₹2,800 crore. In contrast, foreign institutional investors remained cautious, recording a net sell-off of ₹576 crore. This divergence between local buying and foreign selling has become a recurring theme, suggesting that domestic liquidity is playing a significant role in providing stability during periods of international risk aversion.
On the macroeconomic front, commodity markets are showing signs of stabilization. Brent crude oil prices have settled slightly higher at $100.57 per barrel, and investors are watching for any new developments from the United Nations General Assembly that could impact energy costs. A stable or softening energy price environment is generally viewed as positive for the Indian economy, given its heavy dependence on oil imports. Additionally, the US Dollar Index, which sits near a seven-week high of 100.3, remains a factor that influences currency flows and sentiment in emerging markets.
Investors may monitor how indices react to these global signals as the session progresses. The key focus for the day will be whether the domestic buying trend can sustain the positive momentum despite the caution shown by foreign institutional players. Sector-specific movements, particularly in technology and energy-linked stocks, will be important areas to track throughout the day.