Indian equities may open higher on Wednesday, buoyed by positive global cues and signals from GIFT Nifty, despite a sharp selloff in the previous session. Here’s a detailed look at the factors shaping today’s market mood.
Opening Signals: GIFT Nifty Points Up
GIFT Nifty is indicating a strong start for domestic markets, suggesting a possible rebound after Tuesday’s steep correction. After the sharp dip, traders may eye value-buying opportunities at lower levels.
Global Markets Snapshot
Asia: Mixed Sentiment
Asian markets opened on a mixed note, reflecting a cautious optimism. Investors are weighing soft U.S. inflation data against ongoing global macroeconomic uncertainties.
U.S.: Tech Leads, Dow Drags
U.S. markets ended mixed on Tuesday:
- S&P 500 jumped 0.72% to 5,886.55, lifted by cooling inflation data.
- Nasdaq Composite surged 1.61% to 19,010.09, led by tech stocks.
- Dow Jones bucked the trend, falling 0.64% to 42,140.43, dragged down by financials and industrials.
Investor sentiment improved on signs of easing U.S.-China trade tensions and a softer-than-expected inflation print, which could ease the Fed’s rate path.
Recap: Indian Markets Yesterday
Tuesday saw significant profit booking on Indian bourses:
- Sensex closed down 1,281.68 points or 1.55% at 81,148.22.
- Nifty 50 lost 346.35 points or 1.39%, settling at 24,578.35.
The selloff came after a multi-day rally, as investors locked in gains. Broader market sentiment was cautious, with volatility ticking up ahead of key global and domestic events.
What to Watch Today
- Reactions to overnight U.S. market performance and Asian market cues
- Movements in GIFT Nifty and sectoral rotation
- Institutional flows and FIIs/DII activity
- Updates on macroeconomic data or policy cues
Bottom Line
After Tuesday’s correction, markets seem poised for a bounce, but volatility may remain elevated. Investors should stay alert to global cues and look for selective opportunities, especially in sectors showing resilience.
