GIFT Nifty signals strong opening for Indian benchmark indices
Indian equities may start higher on Tuesday despite weakness in Asian markets and a selloff in US technology stocks.
The GIFT Nifty was trading at 23,519 at around 7:40 am on Tuesday, up 116 points or 0.5 per cent, according to Moneycontrol.
This indicates a potential strong start for the Sensex and Nifty, even as Asian markets showed weakness and US technology stocks faced overnight losses.
On Monday, the Sensex rose 1,233.25 points or 1.66 per cent to 75,692.78, while the Nifty increased by 387.70 points or 1.68 per cent to 23,440.80. Reliance Industries shares climbed approximately 12 per cent after reporting its fiscal second quarter earnings.
In terms of investor activity, foreign institutional investors purchased equities valued at Rs 3,114 crore for the second day in a row. Meanwhile, domestic institutions sold shares worth Rs 392 crore, marking their second straight session of selling.
Global markets showed mixed trends, with the MSCI Asia Pacific Index falling 0.6 per cent and South Korea's Kospi dropping more than 2 per cent. In the US, the Nasdaq Composite fell 1.07 per cent to 25,164.32, while the S&P 500 decreased 0.51 per cent to 7,541.40.
Enrich Money CEO Ponmudi R said that geopolitical developments and energy price movements could affect the near-term direction of Indian equities. He noted that while de-escalation in the Middle East could support recovery, a breakdown in negotiations or weak global technology stocks might increase volatility.
