Indian equity markets concluded Monday's trading session on a higher note, with the Nifty index experiencing a gain of 0.7% during the day. According to reports from The Economic Times, market participants are now anticipating the upcoming Q1FY27 earnings season, which is expected to be the key near-term catalyst for further market movements. GIFT Nifty on the NSE IX traded higher by 97.5 points, or 0.40% at 24,589.50, signaling that Dalal Street was headed for a positive start on Tuesday, as reported by The Economic Times.
Analysts say Indian equity markets are likely to gradually move higher, supported by stable crude oil prices, a steady rupee, and strong pre-quarterly business updates, particularly from index heavyweight banks and financials. As reported by The Economic Times, market sentiment remains positive, supported by the decline in the India VIX, which reflects improving investor confidence. The Nifty is likely to extend its gains towards the next crucial resistance at 24,800, while immediate support is placed at 24,300. Global markets provided additional support, with the S&P 500 and Nasdaq ending sharply higher on Monday, as investors bought shares in companies related to artificial intelligence that are expected to drive a strong second-quarter earnings season.
The India VIX, a measure of market fear, rose 0.17% to settle at 11.82 levels, indicating some cautious sentiment among investors. According to The Economic Times, the Indian rupee slipped to a three-week low at 95.39 on Monday, as a broadly upbeat dollar pinched Asian currencies, with maturing contracts in the non-deliverable forward also adding to the pressure on the local unit. Oil prices edged higher on Tuesday, but gains were limited as traders looked beyond easing geopolitical tensions in the Middle East and turned their attention to supply increases and demand prospects.
Foreign and domestic institutional investors showed net buying activity, supporting the market's upward momentum. As reported by The Economic Times, this institutional support comes as markets prepare for the crucial Q1FY27 earnings season, which is expected to provide key insights into corporate performance and future market direction. The positive sentiment was further supported by global market developments, with S&P 500 futures little changed as of 9:09 a.m. Tokyo time, while Australia's S&P/ASX 200 fell 0.2% and Euro Stoxx 50 futures fell 0.3%.
