Indian equity markets are set for a subdued opening amid mixed global cues, rising crude prices, and geopolitical tensions, with domestic buying offering some resilience amid volatility concerns.
Indian equities were set for a softer opening on Tuesday as global cues stayed mixed and the GIFT Nifty pointed to a modestly weaker start. Zee Business managing editor Anil Singhvi said the market was also watching renewed US-Iran tensions, which he argued could keep crude prices and risk sentiment in focus for Indian investors. Moneycontrol reported that the GIFT Nifty was trading near 24,291, about 6.5 points below the previous close of Nifty futures, while the Sensex and Nifty had ended the previous session lower.
Singhvi said one of the biggest near-term concerns was that crude was still above $90 a barrel, a level that can hurt India’s inflation outlook, widen the current account gap and add pressure on the rupee. He also flagged foreign institutional selling, weakness in US markets and a gradual loss of technical momentum as factors that could cap any rebound. By contrast, domestic institutional buying and continued resilience in mid- and small-cap shares were helping to cushion the market, according to the Zee Business report.
The broader backdrop remains mixed. Singhvi pointed to a strong earnings season as a support for equities and said the latest US-Iran friction had so far remained largely verbal rather than turning into direct conflict. He also noted that pressure from foreign selling had eased somewhat, while domestic funds continued to buy, and that the response to FCNR(B) deposits was another positive for both the market and the rupee.
Even so, volatility may be overdue. Singhvi said the Nifty has traded within a narrow band for nine straight sessions, while Bank Nifty has been equally range-bound for 10 sessions, a pattern that often precedes a sharper move. He added that continuing supply from offer for sale deals, IPOs, block transactions and qualified institutional placements could keep sentiment under strain if global risk appetite weakens further.
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