GIFT Nifty Signals Weak Start For Sensex, Nifty As Crude Price Climbs Above $75

GIFT Nifty indicated a negative start for Indian benchmark indices on Wednesday, with futures trading about 140 points, or 0.57%, lower. The cautious outlook follows a sharp rise in the crude price after renewed tensions between the U.S. and Iran unsettled global markets.

The weak indication comes after a subdued session on Tuesday, when the Nifty 50 ended 32 points, or 0.13%, lower at 24,398.70, while the BSE Sensex declined 104.35 points, or 0.13%, to close at 78,180.72.

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GIFT Nifty Reflects Cautious Mood

The decline in GIFT Nifty suggests domestic markets may begin the session on a weaker footing as investors react to developments in West Asia. The U.S. revoked Iran’s authorisation to export oil, while reports of fresh military strikes added to uncertainty surrounding global energy supplies.

The rise in the crude price is expected to remain one of the key factors influencing market sentiment through the session, particularly for import-dependent economies such as India.

Global Markets Trade Lower

Asian equities opened mostly lower on Wednesday. Japan’s Nikkei 225 fell 0.55%, while the broader Topix index lost 0.7%. South Korea’s Kospi declined 0.72% and the Kosdaq slipped 1.94%. Hong Kong’s Hang Seng futures also pointed to a subdued opening.

U.S. stock futures traded on a mixed note. Dow Jones futures were lower by 29 points, while S&P 500 futures gained 0.14% and Nasdaq 100 futures rose 0.51%.

In the previous session, Wall Street ended lower. The Dow Jones Industrial Average fell 130.76 points, or 0.25%, while the S&P 500 declined 0.45%. The Nasdaq Composite dropped 1.16% as investors pared exposure to technology stocks.

Crude Price, Gold And Currency Trends

The crude price extended gains after the latest geopolitical developments. Brent crude rose above $75 a barrel, while West Texas Intermediate traded above $71 a barrel.

Gold price also moved higher, with COMEX gold trading around $4,121.90 per ounce. In India, the 24-carat gold price stood at ₹1,45,610 per 10 grams.

The U.S. Dollar Index remained largely unchanged at 100.89. The Indian rupee had settled at 95.39 against the U.S. dollar in the previous session.

Institutional Flows In Focus

According to provisional NSE data, foreign institutional investors purchased equities worth ₹393.19 crore on July 7. Domestic institutional investors, meanwhile, were net sellers of ₹383.43 crore.

With GIFT Nifty pointing to a lower opening and the crude price remaining elevated, investors are likely to monitor global developments closely alongside institutional flows and sector-specific activity for further direction during Wednesday’s trade.