Indian equity markets are indicating a marginally weaker start on Tuesday after registering gains over the previous three trading sessions. The recent rally has reinforced investor confidence, particularly supported by a late recovery in Monday’s session.
Market participants will track global cues, crude oil prices, foreign institutional investor activity, and the rupee-dollar trajectory during the session. Banking, IT, and metal stocks are expected to remain active.
If positive triggers persist, the ongoing upward momentum may continue, while any adverse global signals could lead to profit booking.
GIFT Nifty Signals Weak Opening
GIFT Nifty declined by approximately 79 points, or 0.34%, and was trading near the 22,922 level, indicating a potentially subdued opening for the Nifty 50 and domestic markets. India VIX recorded a marginal decline, suggesting reduced market volatility.
According to market experts, a move above the 23,000 level in the Nifty could lead to an upside towards 23,450. Failure to sustain above this level may keep the index range-bound between 22,200 and 23,000.
Global Markets Provide Support
Global markets showed a positive trend, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite closing higher on Monday. The gains were attributed to expectations of a possible diplomatic resolution between the United States and Iran.
Asian markets also traded higher, with the MSCI Asia Pacific Index rising approximately 0.7%. Gains in the technology sector were led by ber results from Samsung Electronics.
Geopolitical Tensions and Crude Oil Movement
US President Donald Trump issued a warning to Iran, stating that failure to demonstrate seriousness in negotiations within the specified timeline could result in military action. Following the statement, tensions in the Strait of Hormuz intensified, a key route for global oil supply.
Crude oil prices moved higher amid these developments, posing implications for import-dependent economies such as India.
FII Outflows Continue, DII Buying Supports Market
Foreign institutional investors continued to sell equities in the Indian market. Recent data showed net sales of approximately Rs 8,167 crore by FIIs. In contrast, domestic institutional investors provided support with purchases of around Rs 8,089 crore.
