GIFT Nifty Signals Strong Opening For Indian Markets As Global Cues Muddy Waters

The GIFT Nifty index was trading nearly 97 points higher than its closing price of the previous session. The upbeat indication comes as investors assess developments in U.S.-Iran peace negotiations, movements in crude oil prices and global bond markets.

On Friday, Indian equities ended lower after five straight sessions of gains. The Sensex dropped 607.08 points, or 0.78%, to settle at 76,802.90, while the Nifty 50 declined 154.90 points, or 0.64%, to close at 24,013.10. Selling pressure in information technology stocks weighed on benchmark indices.

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GIFT Nifty Indicates Positive Opening

Early trends in GIFT Nifty suggested a stronger start for Dalal Street. The index traded around the 24,154 mark, implying an opening gain of nearly 100 points over the Nifty futures’ previous close.

The signal from GIFT Nifty came despite a mixed setup across international markets, with investors balancing progress in geopolitical negotiations against concerns over inflation and interest rates.

Asian Markets Trade Mixed

Most Asian markets opened higher on Monday. Japan’s Nikkei 225 rose 1.75%, while the broader Topix index advanced 1.17%. South Korea’s Kospi gained 1.54%, although the Kosdaq slipped 0.57%.

Hang Seng index futures indicated a weaker start, while MSCI’s Asia-Pacific index excluding Japan edged down 0.4%.

U.S.-Iran Talks Remain In Focus

Markets continued to monitor discussions between the United States and Iran. According to official statements issued by Qatar and Pakistan, negotiators completed the first round of talks and made progress on a framework aimed at reaching a final agreement within 60 days.

The developments helped ease some concerns over disruptions to global energy supplies, although uncertainty around the pace of negotiations persisted.

Crude Oil And Bond Yields Add To Inflation Concerns

Brent crude futures climbed 0.83% to $81.24 per barrel, while U.S. West Texas Intermediate crude oil price rose 2.04% to $77.40 a barrel as shipping activity through the Strait of Hormuz slowed.

Meanwhile, Japanese government bond yields extended gains for a third consecutive session. The benchmark 10-year yield rose 3 basis points to 2.675%, reflecting concerns over inflation and fiscal conditions.

Minutes of the Reserve Bank of India’s Monetary Policy Committee meeting showed all six members favoured maintaining rates earlier this month due to uncertainty surrounding inflation and growth amid geopolitical tensions.

With GIFT Nifty signalling early strength, investors are expected to track global developments, commodity prices and interest-rate expectations for further direction during Monday’s session.