Gift Nifty Signals Positive Opening As Global Cues Stay Mixed

Gift Nifty pointed to a slightly higher opening for the Indian stock market on Wednesday, even as investors remained watchful of developments in West Asia and global economic indicators. The derivative index was trading around the 24,049 level, about 25 points above the previous close of Nifty futures, indicating a modestly positive start for domestic equities.

Indian benchmark indices ended lower on Tuesday as higher crude oil price and geopolitical uncertainty weighed on sentiment. The Sensex declined 561.46 points, or 0.72%, to close at 77,054.94, while the Nifty 50 lost 158.95 points, or 0.66%, to settle at 24,052.05. With Gift Nifty showing a slight premium, investors will look for direction from overseas markets and ongoing corporate earnings.

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Asian Markets Extend Gains

Asian markets traded higher on Wednesday after Wall Street closed in positive territory. Japan’s Nikkei 225 advanced 0.30%, while the Topix gained 0.23%. South Korea recorded the strongest move, with the Kospi rising 5.51% and the Kosdaq climbing 5.08%. Hong Kong Hang Seng index futures also pointed to a firm opening, adding support to regional sentiment.

Wall Street Ends Higher After Inflation Data

U.S. equities finished higher overnight following the release of June inflation figures and quarterly earnings from major banks. The Dow Jones Industrial Average edged up 10.02 points to 52,508.66. The S&P 500 rose 28.55 points, or 0.38%, to 7,543.89, and the Nasdaq Composite climbed 233.83 points, or 0.90%, to 26,107.01.

Technology stocks delivered mixed performances. Nvidia stock price gained 4.06%, AMD share price rose 2.57%, Intel share price added 4.50%, and Micron Technology share price climbed 4.92%. Apple share price slipped 0.77%, Microsoft share price fell 1.55%, Tesla share price edged up 0.36%, while IBM share price dropped 25.21% after the company issued weaker-than-expected preliminary second-quarter guidance.

U.S. Inflation, Crude Oil Price In Focus

According to U.S. government data, the Consumer Price Index rose 3.5% year-on-year in June after increasing 4.2% in May. On a monthly basis, the index declined 0.4% following a 0.5% rise in the previous month. Reuters reported that economists had expected annual inflation of 3.8% and a monthly decline of 0.1%.

Meanwhile, the crude oil price continued to strengthen as tensions between the U.S. and Iran intensified. Brent crude oil price rose 1.72% to $86.19 a barrel, while WTI crude oil price gained 1.4% to $80.40 a barrel. Gold price remained largely unchanged at $4,054.36 an ounce, while silver price increased 0.2% to $58.80 an ounce.

Geopolitical Developments Remain Under Watch

Global markets are also monitoring developments in West Asia after the U.S. announced additional military action against Iran and Iran said it had again closed the Strait of Hormuz. Alongside these events, domestic investors are expected to monitor quarterly earnings, global inflation trends and movements in Gift Nifty for further cues on market direction during Wednesday’s session.