GIFT Nifty Trades Higher But Trims Gains Amid Mixed Global Cues

GIFT Nifty traded higher on March 24 but erased some of its gains as global markets reflected a weak sentiment in response to conflicting signals from West Asia.

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As of around 7:40 am, GIFT Nifty was trading higher by 386 points, or 1.7%, after earlier surging nearly 900 points, or about 4%, in the previous session. The moderation in gains came as Asian markets and U.S. futures turned volatile amid fresh geopolitical updates.

Global Markets Turn Mixed

Global cues remained uneven. According to Reuters, futures linked to the S&P 500 index slipped 0.6% after initially trading higher, following a Wall Street Journal report that U.S. allies in the Persian Gulf may move closer to joining the conflict involving Iran. Sentiment weakened further after an Iranian lawmaker ruled out any negotiations with the U.S.

Asian markets also reduced early gains. Indices that had risen as much as 1.7% earlier in the session were later trading closer to 0.8% higher, reflecting cautious investor positioning.

The Bloomberg Dollar Spot Index rose 0.3%, while yields on the two-year U.S. Treasury increased by four basis points, indicating tightening financial conditions. Gold prices extended their decline and are on track for their longest losing streak, reflecting shifting risk appetite.

Oil Prices Rebound After Sharp Fall

Crude oil prices moved higher again after a sharp fall in the previous session. Brent crude rose 3.5% to nearly $103.50 per barrel, according to Reuters data. This follows an 11% drop on March 23 after U.S. President Donald Trump announced a temporary pause in planned strikes on Iran’s energy infrastructure.

Despite the decline in the above aspect, concerns regarding supply persist. The Strait of Hormuz continues to experience limited vessel movement.

Geopolitical Developments In Focus

Events in the region remained at the heart of market activity. According to Reuters, Israel confirmed ongoing military operations in Tehran shortly after the U.S. signalled a temporary halt to its planned actions.

The difference between the efforts put into diplomacy and the actual military operations also played a part in the volatility that was witnessed.

Market Direction Still Linked to Global Cues

The movement in GIFT Nifty indicates that the markets are still reacting to global factors, especially oil prices and geopolitical developments. Although the markets opened higher due to positive sentiments regarding the resolution of tensions, the gains were later erased.

Market trading activities are likely to be in sync with global cues, with investors looking forward to developments in West Asia and global markets.