GIFT Nifty Today: Market Set For Firm Opening As Crude Oil Prices Fall; Global Cues Positive

GIFT Nifty Today, September 22: Indian stock markets are likely to open on a positive note on Tuesday, with the GIFT Nifty pointing to a firm start for the domestic equities market. The GIFT Nifty was trading at 23,497.5, up 58 points or 0.25%, around 7:47 am.

The early gains come amid easing crude oil prices, softer US Treasury yields and positive cues from global markets. However, elevated geopolitical tensions and continued foreign fund outflows could keep investors cautious.

“Indian equity markets are expected to open on a steady note, supported by a continued decline in crude oil prices, which have fallen for four consecutive sessions. WTI crude is trading in the $92-$93-a-barrel range, offering some relief on the broader macroeconomic front,”

said Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm.

Ponmudi said the decline in US Treasury yields is also supporting the global risk backdrop, with the 10-year US Treasury yield moving back below 5% after recently touching multi-year highs. However, continued foreign selling remains a key headwind for Indian equities, while buying by domestic institutional investors is providing some support.

Asian markets gain

Asian markets were largely higher on Tuesday, taking cues from the overnight rally on Wall Street and the decline in crude oil prices. South Korea’s KOSPI was trading more than 2% higher, while Taiwan shares also advanced. Japan’s Nikkei 225 remained closed for a market holiday.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose more than 1% in early trading. China’s blue-chip index gained around 0.75%, while Hong Kong’s Hang Seng index was up about 0.4%.

Technology stocks led gains across several Asian markets, with investors also watching developments around US-Iran relations and a potential meeting between US President Donald Trump and Iranian President Masoud Pezeshkian.

Crude oil prices in focus

Oil prices remained a key factor for global markets. Brent crude futures were around $100.22 per barrel after falling more than 3% in the previous session, briefly slipping below the $100 mark.

For India, lower crude prices could provide some relief on the macroeconomic front, particularly given the country’s dependence on imported oil. However, any fresh escalation in Middle East tensions could quickly reverse the recent decline in crude prices.

“While Iran and the US exchanged threats of further escalation over the weekend, optimism is building around a potential meeting between US President Donald Trump and Iranian President Masoud Pezeshkian, who is expected to be in New York for the UN General Assembly this week,” Ponmudi said.

He added that uncertainty surrounding Middle East tensions and regional energy supplies remains a key risk for markets.

US markets, dollar and interest rates

US equity futures were also positive, with Nasdaq futures rising around 0.37%, while European futures were up about 0.3%. Meanwhile, the US dollar remained firm amid expectations that major central banks could maintain or resume tighter monetary policy to contain inflation. The dollar index was around 100.4, close to a seven-week high.

The yen was trading at around 157.39 per dollar, near a three-week low, after recent gains fuelled by expectations of a faster pace of Bank of Japan rate hikes.

Investors will also track global central-bank signals and bond yields closely, as expectations around interest rates continue to influence equity, currency and commodity markets.