Indian equity markets are positioned for a positive start on Wednesday, with GIFT Nifty trading at 23,865 around 7:45 am, up 55 points or 0.23 percent, according to latest reports from Moneycontrol. This signals a firm opening for domestic benchmark indices, providing optimism after the previous session's sharp sell-off. The Sensex and Nifty 50 are both poised for modest gains following the positive GIFT Nifty momentum, with analysts expecting cautious optimism to continue despite mixed global cues and concerns over a more hawkish US Federal Reserve.
Indian equity indices suffered their steepest decline in nearly two weeks on June 23, with the Sensex falling 893.39 points, or 1.16 percent, to close at 76,200.68, while the Nifty dropped 278.80 points, or 1.16 percent, to settle at 23,824.10, as reported by Moneycontrol. Weak global cues and uncertainty surrounding US-Iran peace negotiations weighed on sentiment, while investors continued to reduce exposure to technology shares. However, benchmark indices ended the previous week on a strong note, with Nifty gaining 390 points or 1.65 per cent to close at 24,013.10, while Sensex advanced around 1.7 per cent on a weekly basis. The Sensex and Nifty 50 are both poised for gains following the positive GIFT Nifty momentum.
Global markets showed mixed performance ahead of Wednesday's opening, with Wall Street ending sharply lower overnight as technology and semiconductor stocks faced continued selling pressure. The Nasdaq Composite tumbled 2.21 percent, while the S&P 500 declined 1.44 percent to a more than one-week low, though the Dow Jones Industrial Average was relatively resilient, slipping just 0.09 percent. However, Asian markets showed signs of stabilisation, with MSCI's broadest index of Asia-Pacific shares outside Japan remaining little changed, while South Korea's Kospi rebounded 2.2 percent after Tuesday's sharp 10 percent plunge. Investors remained concerned about rising debt-funded spending on artificial intelligence infrastructure and the possibility that the US Federal Reserve could adopt a more hawkish stance later this year.
Crude oil prices extended their recent decline, providing key support for oil-importing economies such as India, with Brent crude trading near $76.7 per barrel and US crude hovering below $73 per barrel, according to Moneycontrol reports. Both benchmarks are now trading near four-month lows as progress in US-Iran negotiations and the resumption of tanker traffic through the Strait of Hormuz ease concerns over supply disruptions. The sharp fall in crude prices has emerged as one of the strongest supports for Indian equities, with analysts noting that crude prices fell nearly 7 per cent during the week, slipping below the $80-per-barrel mark. Brent crude futures rose 1.1% to $81.43 a barrel, while U.S. crude firmed 2.7% to $78.70 a barrel, remaining above the $67 level it traded at before the war began.
Institutional flows remained supportive despite Tuesday's sharp correction, with Foreign Institutional Investors (FIIs) turning marginal net buyers on June 23, purchasing equities worth ₹17 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹680 crore, as reported by Moneycontrol. From a technical perspective, the Nifty remains under pressure after slipping below the 24,000 mark, with the immediate hurdle placed at 24,000. A sustained move above this level could revive bullish momentum and open the way for a recovery towards the 24,100-24,200 zone, while 23,800 remains a critical support level. A decisive break below this zone could trigger fresh selling pressure and expose the index to the 23,600 level. Market participants are also closely monitoring monsoon progress, with rainfall deficiencies in several regions raising concerns about agricultural output, food inflation and rural demand.
