Gift Nifty Signals Positive Start Despite Global Geopolitical Concerns

Gift Nifty signalled a positive start for the Indian stock market on Thursday after Wednesday’s sharp sell-off. The derivative index was trading near the 23,990 mark, about 78 points above the previous close of Nifty futures, indicating that benchmark indices could open with gains.

The positive indication from Gift Nifty comes after the Sensex dropped 1,677.12 points, or 2.15%, to close at 76,503.60, while the Nifty 50 declined 516.65 points, or 2.12%, to settle at 23,882.05 in the previous session.

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Global Markets Offer Mixed Signals

Asian markets traded mixed on Thursday as investors assessed the impact of renewed tensions in West Asia. Japan’s Nikkei 225 advanced 2.17%, while the Topix gained 0.54%. South Korea’s Kospi rebounded 2.97% after the previous session’s sharp decline, and the Kosdaq rose 4.17%. Hong Kong futures, however, indicated a weaker opening.

On Wall Street, trading ended on a mixed note overnight. The Dow Jones Industrial Average fell 1.09% to 52,348.39, while the S&P 500 slipped 0.28% to 7,482.71. The Nasdaq Composite outperformed with a gain of 0.20%, closing at 25,870.65.

Crude Oil Price Remains In Focus

The crude price continued to climb after fresh U.S. military strikes on Iran heightened concerns over oil supplies from the Middle East. Brent crude price traded around $78.82 per barrel, while West Texas Intermediate (WTI) crude rose to $74.24 per barrel.

Higher crude oil prices have also pushed global bond yields upward. The benchmark U.S. 10-year Treasury yield touched 4.597%, its highest level in seven weeks, reflecting concerns over inflation and borrowing costs.

Minutes from the U.S. Federal Reserve’s June policy meeting showed that some officials considered the possibility of raising interest rates, citing inflation risks linked to geopolitical developments and resilient economic conditions.

Other Global Developments

The International Monetary Fund lowered its global growth forecast for 2026 to 3.0% from 3.1% projected earlier. While India remains one of the fastest-growing major economies, the IMF trimmed its FY2027 GDP growth forecast for the country to 6.4% from 6.5%.

On the other hand, the U.S. dollar index maintained its level around 100.96. The price of gold fell, with spot gold trading at $4,066 an ounce, while the price of silver also fell.

The investor sentiment is expected to remain focused on Gift Nifty, along with crude oil prices, bond yields globally, and geopolitical developments, since these would influence the sentiment in the Indian share market.