Pre-Market Update: Nifty 50 May Open Higher as GIFT Nifty Signals Over 80-Point Gain

Pre-Market Update at 7:40 AM: Indian equities are likely to begin Thursday’s session on a positive note, with GIFT Nifty indicating a higher opening after the Nifty 50 slipped below the 24,000 mark in the previous session. Global markets witnessed a recovery overnight as U.S. equities rebounded from recent weakness, while concerns over crude oil prices, elevated bond yields and geopolitical tensions continue to influence investor sentiment.

GIFT Nifty was trading around 24,083 in early trade, higher by nearly 118 points. The move indicates a mildly positive opening for Indian equities, although the sustainability of gains will depend on global cues, crude oil movement and domestic technical levels.

The Nifty 50 declined for the third consecutive session on Wednesday, closing at 23,914.45, down 141.35 points or 0.59 per cent. The index remained under pressure as rising crude oil prices and concerns around global inflation weighed on market sentiment.

U.S. equity markets ended higher on Wednesday, supported by gains in technology stocks and easing pressure from bond yields. The Dow Jones Industrial Average gained 295.01 points or 0.56 per cent to close at 53,061.95. The S&P 500 advanced 35.16 points or 0.46 per cent to 7,666.60, while the Nasdaq Composite rose 118.05 points or 0.45 per cent to 26,217.83.

Technology stocks, including Semiconductor companies, supported the recovery, while investors continued to monitor labour market signals and Federal Reserve policy expectations. Weak private payroll data added to expectations of a softer labour market, although inflation risks stemming from higher crude oil prices remained a concern.

The U.S. 10-year Treasury yield remained elevated near 4.78 per cent, keeping pressure on global risk assets. Higher yields increase borrowing costs and can influence foreign fund allocation decisions across emerging markets.

Asian markets opened with a cautious tone. Japan’s Nikkei 225 traded higher, gaining around 0.1 per cent to 64,373.74, supported by financial and trading companies after recent bond market volatility eased.

Markets across Asia remained focused on crude oil prices, currency movements and geopolitical developments involving the U.S. and Iran. Investors also continued to track global bond yields and expectations surrounding central Bank policies.

European equities faced pressure in the previous session as rising energy prices and higher bond yields increased concerns over inflation. Bond market volatility remained a key factor influencing European markets, with investors monitoring fiscal concerns and the outlook for central bank policies.

Brent crude prices remained elevated above USD 95 per barrel amid geopolitical tensions involving the Middle East. Brent crude closed around USD 95.63 per barrel after gaining nearly 1 per cent during the previous session.

Higher crude oil prices remain negative for sectors dependent on fuel costs, including aviation, paints and some consumer industries. Oil marketing companies could also face margin pressure if fuel prices remain elevated.

WTI crude traded near USD 91.73 per barrel, reflecting continued concerns over potential supply disruptions and geopolitical risks.

The Dollar Index strengthened to around 99.80, reaching its highest level since mid-August as geopolitical uncertainty increased demand for the U.S. currency.

The Indian rupee closed at 94.97 against the U.S. dollar on Wednesday. The currency remained relatively stable despite higher crude oil prices and elevated U.S. yields, supported by intervention from the Reserve Bank of India in the foreign exchange market.

Gold prices remained supported by geopolitical uncertainty, although higher bond yields and a stronger dollar limited the upside. International gold traded near USD 4,410 per ounce in recent global trade.

Foreign institutional investors remained buyers in the previous session, recording net purchases of Rs 6,688.37 crore. Domestic institutional investors were also net buyers, purchasing equities worth Rs 2,812.98 crore.

The Sensex declined 373.93 points or 0.49 per cent to close at 76,570.35, while the Nifty 50 ended lower by 141.35 points or 0.59 per cent at 23,914.45.

The Nifty 50 traded below the important 24,000 mark during the session, reflecting continued weakness after failing to sustain higher levels. India VIX increased by more than 5 per cent, indicating higher expected volatility.

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

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