GIFT Nifty Hints at Flat Start; Global Cues Positive for Sensex, Nifty

Mumbai: Indian equity benchmarks are likely to open on a steady note on Monday, with GIFT Nifty trading marginally higher, indicating a flat to positive start for the Sensex and the Nifty. The cues come amid a broadly positive global environment, as Asian markets followed a strong rally on Wall Street and oil prices held firm.

GIFT Nifty Points to Muted Opening

GIFT Nifty, the offshore derivative instrument that trades on the International Exchange in Gujarat, was hovering around the neutral line in early deals. This suggests that the domestic indices may open without any major gap, consolidating after recent moves.

Market participants will be watching the early trade for momentum, with the Nifty likely to find support around its immediate psychological level of 24,500, while resistance is seen near 24,700.

Asian Markets Rise on Wall Street Rally

Asian shares extended gains on Monday, buoyed by a strong close on Wall Street in the previous session. The positive sentiment from the US, where major indices climbed on hopes of a soft landing for the world's largest economy, spilled over into the region.

Japan's Nikkei and China's Shanghai Composite were both trading in the green, while Hong Kong's Hang Seng also advanced. The upbeat mood across the region is likely to provide a supportive backdrop for Indian equities.

Oil Prices Firm Up

Brent crude oil prices were trading slightly higher, adding to the positive global cues. The firmness in oil comes amid ongoing supply concerns and a pick-up in demand. For India, a net importer of crude, any sustained rise in oil prices can weigh on inflation and the fiscal deficit, but the current uptick is modest.

Higher oil prices can also impact the rupee and influence foreign fund flows, though the immediate effect on the market appears limited at this stage.

What to Watch in Trade

Domestically, investors will track the movement of the rupee against the dollar, as well as any sector-specific news. Banking and IT stocks are expected to remain in focus, given their weightage in the indices.

Foreign institutional investor (FII) activity will also be closely monitored, as sustained buying or selling can set the tone for the day. With no major domestic economic data scheduled, global cues and crude prices are likely to guide the market through the session.

Analysts advise a stock-specific approach, as the broader market may remain range-bound in the absence of fresh triggers.

The coming sessions will depend on how global markets evolve, particularly the US inflation data due later this week, which could influence the Federal Reserve's policy path and, in turn, capital flows into emerging markets like India.