GIFT Nifty Signals Positive Opening For Sensex, Nifty; Crude Oil Retreat, Global Cues In Focus

GIFT Nifty Today, September 18: Indian equity markets are likely to open on a firm note on Friday, with the GIFT Nifty pointing to early gains, as easing crude oil prices and a recovery in global technology stocks improve investor sentiment.

GIFT Nifty was trading at 23,346 as of 7:42 am, up 13 points or 0.05% from the previous close.

Ponmudi R, CEO of Enrich Money, said, “Indian equity markets are set for a steady opening today, supported by a retreat in crude oil prices and a modest pullback in US Treasury yields that helped fuel a relief rally across Wall Street overnight.”

However, elevated crude prices and geopolitical tensions remain key risks for Indian markets. Brent crude futures fell 1% to $103.77 a barrel, amid hopes of alternative supply

routes from the Middle East, although concerns over strikes involving Saudi Arabia and Yemen’s Houthis persisted.

“The decline in WTI crude from its recent peak offers some relief on the macroeconomic front, but oil prices remain near the $100-a-barrel mark in international markets. That level is still high enough to keep investors guarded, given the potential impact on India’s import bill, inflation outlook and corporate margins,” Ponmudi said.

He added that continued geopolitical uncertainty could quickly reverse the recent decline in oil prices and increase market volatility.

“Overall, the opening backdrop is supportive, but the combination of elevated oil prices and persistent geopolitical risks is likely to keep risk appetite measured, particularly at higher market levels,” Ponmudi said.

Asian markets, Wall Street cues

Asian equities were higher on Friday, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.55%. Japan’s Nikkei gained around 0.9%, while South Korea’s KOSPI surged 2%.

Wall Street also provided support after beaten-down technology stocks rallied overnight. Meanwhile, US Treasury yields eased after a sharp selloff earlier in the week pushed the 10-year yield above 5%, its highest level since 2007. It was last at 4.936%.

The Japanese yen weakened to 156.23 per US dollar as investors awaited the Bank of Japan’s policy decision. Markets were preparing for a rate hike and looking for clues on the central bank’s future tightening path.

Meanwhile, the euro was steady at around $1.148, while spot gold rose 0.5% to $4,361 an ounce.