Nifty to Open Higher Today: Know the Key Factors Behind the Bullish Start

On Wednesday, November 26, Indian equity benchmarks—Sensex and Nifty 50—are poised for a gap-up opening, fueled by favorable cues from global markets. The GIFT Nifty is indicating a strong start with a 122-point gain at 26,166 as of 7:50 AM.

In early trading, Asian markets are showing upward momentum, while U.S. equities extended their rally overnight. The market's optimism is underpinned by several key catalysts:

Six Key Catalysts Driving the Market:

1. Wall Street's Sustained Strength: U.S. equities continue their upward trend, boosting investor sentiment globally.
2. Rate Cut Expectations: There is renewed anticipation of a December rate cut by the Federal Reserve. U.S. Treasury Secretary Scott Bessent noted the economic setback from the 43-day federal shutdown, resulting in an estimated $11 billion loss. However, he reassured that the U.S. economy remains resilient and is unlikely to fall into a recession.
3. AI-Driven Trade Resurgence: Confidence in AI-led trade is gaining traction, lifting market sentiment.
4. U.S.-India Trade Optimism: Hopes for a potential trade agreement between the U.S. and India are fueling market optimism.
5. FII Inflows: Foreign Institutional Investors (FIIs) turned net buyers, with a purchase of Rs 785.30 crore worth of equities.
6. Crude Oil Prices Drop: Crude oil prices have fallen to USD 57.2 per barrel, marking a five-week low, after reports of a potential peace deal between Ukraine and Russia. This has added further support to market sentiment.

On Tuesday, November 25, FIIs were net buyers, with purchases amounting to Rs 785.30 crore. Domestic Institutional Investors (DIIs) also remained active, continuing their buying streak with Rs 3,912.47 crore of net inflows—marking their 23rd consecutive session of buying.

Indian equity indices opened on a positive note but reversed course as the session progressed, closing lower amidst heightened volatility. The Nifty 50 slipped 0.29 per cent, falling below the 25,900 level, ahead of the November series F&O expiry. Meanwhile, the Sensex ended 0.37 per cent lower. Despite this, broader markets outperformed, with the Nifty Midcap and Smallcap 100 indices finishing in the green. India VIX also saw a notable drop, falling over 7 per cent.

Wall Street continued its upward momentum, recording solid gains for the third consecutive session. The rally was driven by renewed expectations of a Federal Reserve rate cut in December, with futures markets now pricing in an 83% likelihood of a 25 basis point rate cut next month—up from 50 per cent a week ago. Despite early losses during the session, the major U.S. indices finished strong. The Dow Jones rose 1.4 per cent to 47,112, the S&P 500 gained 0.9 per cent to 6,765, and the Nasdaq Composite advanced 0.7 per cent to 23,025.

Disclaimer: The article is for informational purposes only and not investment advice.