GIFT Nifty Signals Weak Opening For Markets

Indian equity benchmarks Sensex and Nifty are likely to open lower on Tuesday after GIFT Nifty slipped around 110 points, or nearly 0.5%, to trade near the 23,677 mark in early trade.

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The weak indication comes after domestic markets witnessed a sharp decline on Monday. The Sensex dropped more than 1,300 points, while the Nifty closed below 23,850 amid broad-based selling across sectors.

Global market sentiment remained cautious as crude oil prices extended gains following fresh comments from U.S. President Donald Trump on the Iran conflict. According to Reuters, Trump described Iran’s response to the U.S. peace proposal as “stupid” and said the ceasefire remained “on life support,” raising concerns over prolonged disruptions in the Gulf region.

Crude Oil Prices Stay Above $105

Brent crude traded above $105 per barrel on Tuesday after rising nearly 3% in the previous session. U.S. crude oil also moved above $98 per barrel.

The continued rise in oil prices has increased concerns for India, which imports more than 85% of its crude oil requirements. Higher oil prices are expected to increase pressure on inflation, the rupee and corporate earnings.

The rupee had already weakened to a record closing low of 95.31 against the U.S. dollar on Monday amid rising crude prices and persistent foreign fund outflows.

Global Markets Mixed

Asian markets traded mixed on Tuesday morning after Wall Street closed at record highs overnight.

MSCI’s Asia Pacific index declined 0.6%, while S&P 500 futures slipped 0.3% during Asian trading hours. Japan’s Topix index rose 0.3%, Hong Kong’s Hang Seng gained 0.5%, while China’s Shanghai Composite index traded marginally lower.

In the U.S., the S&P 500 rose 0.19% to close at a record high of 7,412.84, while the Nasdaq Composite gained 0.10% to settle at 26,274.13. The Dow Jones Industrial Average also advanced 0.19% to 49,704.47.

FII Selling Continues

Foreign institutional investors remained net sellers in Indian equities on Monday. According to exchange data, FIIs sold shares worth ₹8,438 crore, marking the highest single-day outflow since April 24.

Domestic institutional investors continued to provide support and purchased equities worth ₹5,940 crore during the session.

Investors are also tracking India’s retail inflation data for April, scheduled to be released later on Tuesday. According to a Reuters poll, economists expect inflation to move closer to the Reserve Bank of India’s 4% target after easing to 3.4% in March.

The movement in crude oil prices, developments in West Asia and foreign investment activity are likely to remain key triggers for Indian markets in the near term.