Indian equity indices are expected to open higher today, lifted by a global technology rally following Nvidia’s strong earnings forecast. While sentiment is improving, investors remain watchful ahead of key policy signals from the Federal Reserve’s Jackson Hole Symposium. A slight dip in crude oil prices also provides some support for the domestic market.
Indian benchmark indices are preparing for a rebound this Friday, aiming to snap a two-day losing streak. The positive momentum is largely driven by a sharp rally in global technology stocks, triggered by Nvidia’s latest earnings report and bullish growth outlook. This recovery in the tech sector, which often influences broader market sentiment, has provided a necessary boost to equity indices after recent volatility.
Despite the cheer from the technology sector, a sense of caution remains visible across Asian markets. The focus is squarely on the Federal Reserve’s annual Jackson Hole Symposium, where global investors are hunting for clues regarding the future path of interest rates. With inflation data showing resilience, the market is bracing for clarity on whether central banks will maintain current interest rate levels or pivot soon. This uncertainty is tempering the appetite for aggressive risk-taking, even as tech stocks gain.
Domestic market data reveals a clear divergence in how participants are viewing the current environment. On Thursday, foreign institutional investors continued to be net sellers, offloading equities worth Rs 298 crore. However, domestic institutional investors have been acting as a strong counterweight, purchasing shares worth Rs 4,977 crore. This sustained domestic buying has been a critical factor in preventing deeper declines, acting as a cushion against foreign outflows.
Energy markets are offering a small measure of relief to Indian investors as Brent crude futures softened to around $89 a barrel. While geopolitical tensions in the Middle East keep energy prices elevated, the recent slight retreat helps ease some pressure on India’s import costs. However, the market remains sensitive to any abrupt changes in oil supply chains.
From a technical perspective, the Nifty is currently trading in a corrective phase. Investors are paying close attention to the 23,800 to 24,600 consolidation range. While the index is currently trading below the 24,378 level, market participants will be monitoring whether it can hold current support levels or if the corrective trend persists. The next directional move will likely depend on how global markets digest the commentary from the Jackson Hole Symposium and the sustainability of the current tech rally.