Positive Start Likely From GIFT Nifty Despite Diplomatic Uncertainty

The Indian market benchmark indices are poised for a positive start today on the back of higher trading of GIFT Nifty than the previous Nifty futures. Firm global markets and gains on Wall Street have improved sentiment, although investors continue to monitor developments surrounding U.S.-Iran talks and crude oil prices.

GIFT Nifty was trading around the 24,011 mark, about 38 points above the previous close of Nifty futures, indicating a mildly higher opening for domestic equities.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Indian markets closed lower on Monday as investors took profits after recent gains. The Sensex closed 372.10 points down at 76,728.37. The Nifty 50 dropped 109.75 points to close at 23,946.25.

GIFT Nifty Leads Positive Global Cues

The strongest overnight signal for Indian markets came from GIFT Nifty, which reflected improved global risk appetite after a broad rally in U.S. equities.

Asian markets also traded largely in positive territory during early Tuesday trade. Japan’s Nikkei 225 advanced 0.29%, while the Topix gained 0.17%. South Korea’s Kospi fell 0.92%, and the Kosdaq declined 0.88%. Hong Kong futures indicated a subdued start.

The positive indication from GIFT Nifty comes even as investors remain cautious ahead of further developments in West Asia.

Wall Street Ends Higher

U.S. equities closed sharply higher overnight, led by gains in technology stocks. The Dow Jones Industrial Average rose 306.63 points, or 0.59%, to finish at 52,182.74. The S&P 500 climbed 1.18% to 7,440.43, while the Nasdaq Composite gained 2.07% to close at 25,820.14.

Technology stocks contributed significantly to the rally. Tesla rose 8.46%, Alphabet gained 4.96%, Amazon advanced 3.20%, AMD climbed 3.43% and Nvidia added 1.27%.

Focus Remains On U.S.-Iran Developments

Markets are continuing to track diplomatic developments between Washington and Tehran. Although the White House stated that U.S. diplomats, comprising Special Envoy Steve Witkoff and Advisor Jared Kushner, have been scheduled to go to Doha to meet Iranian diplomats, Iran has announced that there are no plans for any formal talks with the Americans.

The changing geopolitical scenario is a major determinant of risk sentiment in the world market with respect to the effect it might have on the energy sector.

Other Global Market Indicators

Crude oil prices declined before the impending talks in Doha. Prices of Brent crude were trading close to $72.40 per barrel, while WTI was trading at around $70.16 per barrel.

Spot gold dropped 1.5% to $3,957.74 per ounce, extending losses. U.S. gold futures for August delivery slipped 1.7%, while spot silver declined 2.4%.

The U.S. Dollar Index stood near 101.6 after weakening in the previous session. Currency markets also remained active, with the Japanese yen touching a fresh multi-decade low against the dollar.

Investors will continue to monitor GIFT Nifty, global equity markets, crude oil movements and geopolitical developments through the session, as these factors are expected to shape the direction of Indian equities at the opening and during the day.