Gift Nifty Signals Positive Start for Indian Markets Amid Global Tech Selloff

Indian benchmark indices are expected to begin Thursday’s session on a firm note after Gift Nifty indicated a higher opening, even as weakness in global technology shares weighed on sentiment across Asian markets. Gift Nifty was trading around 24,187.5, nearly 95 points above the previous close of Nifty futures, pointing to a positive start for domestic equities.

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Gift Nifty Remains the Key Domestic Trigger

The Gift Nifty trend is likely to remain the primary focus for investors ahead of the opening bell, as it reflects overnight global developments before Indian trading begins. The upbeat indication comes after the domestic market closed higher in the previous session, with the Sensex rising 444 points, or 0.58%, to 76,922.64, while the Nifty 50 gained 140 points, or 0.59%, to finish at 24,005.85.

Market participants are also expected to track individual share price movements across sectors as trading resumes following Wednesday’s gains.

Asian Markets Trade Lower

Most Asian markets declined after a sharp fall in global chipmakers raised fresh concerns over technology valuations.

South Korea’s Kospi dropped 5.36% at the open, triggering a temporary trading halt, while the Kosdaq slipped 3.55%. Japan’s Nikkei 225 fell 0.70%, although the Topix edged up 0.13%. Australia’s S&P/ASX 200 also traded 0.59% lower. The broader MSCI Asia Pacific Index declined 0.9%.

Semiconductor Stocks Drag Wall Street

U.S. equities ended marginally lower after heavy selling in semiconductor companies offset gains in select technology names.

The Philadelphia Semiconductor Index (SOX) fell 6.3%, while the VanEck Semiconductor ETF declined 5.4%. Shares of Micron Technology and Sandisk each dropped more than 10%.

The Dow Jones Industrial Average slipped 13.96 points to 52,305.24, the S&P 500 lost 16.13 points to 7,483.23, and the Nasdaq Composite declined 173.69 points to 26,040.03.

Gold Price Advances, Crude Oil Price Extends Decline

The gold price continued its recovery after comments from a U.S. Federal Reserve official reduced expectations of an interest rate increase this year.

Spot gold price rose 0.3% to $4,053.57 an ounce after gaining 0.6% in the previous session. Silver also advanced 0.4% to $59.35 an ounce.

Meanwhile, the crude oil price remained under pressure for a third straight session. West Texas Intermediate (WTI) traded near $68 a barrel, while Brent crude settled below $72, supported by uninterrupted crude flows through the Strait of Hormuz and signs of progress in indirect U.S.-Iran discussions, as per reports.

Dollar Firms Ahead of U.S. Employment Data

The U.S. dollar strengthened ahead of the country’s employment report due later this week before trimming part of its gains. The Dollar Index was last trading 0.17% higher at 101.41, while the Japanese yen recovered after earlier touching a multi-decade low against the U.S. currency.

Along with the direction indicated by Gift Nifty, investors are expected to monitor global market developments, the movement in gold price, crude oil price, currency trends and sector-specific share price action for further cues during Thursday’s trading session.