Market Outlook: GIFT Nifty Edges Lower; Wall Street Rally and Global Cues Set Positive Tone
GIFT Nifty opened Monday’s session with a marginal decline of 20 points, indicating a muted but cautious start for Indian equity markets. Despite this dip, global cues remain broadly positive, offering support to investor sentiment at the beginning of the trading week.
Wall Street ended Friday on a strong note, with the S&P 500 and Nasdaq closing at record highs. The rally was fueled by optimism surrounding U.S. trade relations and increased expectations of interest rate cuts by the Federal Reserve. While markets briefly dipped following President Donald Trump’s announcement halting trade talks with Canada, all major U.S. indices still logged weekly gains. Strong economic indicators, including robust consumer spending and sentiment data, reinforced the belief that the Fed may pursue monetary easing to sustain growth.
Asian markets picked up the momentum, with major indices trading higher on Monday morning. Japan’s Topix climbed 0.8%, Australia’s S&P/ASX 200 rose 0.2%, and S&P 500 futures were up by 0.2% as of 9:26 a.m. Tokyo time. Euro Stoxx 50 futures jumped 1.5%, pointing to a strong start for European markets as well.
On the commodities front, gold prices declined to a one-month low, as reduced trade tensions between the U.S. and China weakened safe-haven demand. Investors instead shifted towards riskier assets such as equities. Crude oil prices also fell by 1%, driven by expectations of a potential OPEC+ production hike in August and easing geopolitical risks in the Middle East, improving the supply outlook.
Back home, there are no stocks currently in the F&O ban list. The ban applies to securities that have breached 95% of the market-wide position limit.
In institutional activity, foreign portfolio investors (FPIs) were net buyers on Friday, purchasing shares worth ₹1,397 crore. Domestic institutional investors (DIIs), on the other hand, were net sellers to the tune of ₹589 crore.
The Indian rupee appreciated by 22 paise to close at 85.50 against the U.S. dollar on Friday, supported by foreign fund inflows and improved global risk appetite.
All eyes will now be on market trends, stock-specific action, and cues from the global economic calendar.
