GIFT Nifty signals weak start for Sensex, Nifty after Monday’s rally

Indian stock market benchmark indices Sensex and Nifty 50 are likely to open lower on Tuesday, tracking weak global cues and cautious institutional flows.

The GIFT Nifty was trading at 25,633, down 68.5 points or 0.27 per cent, indicating that the benchmark indices may give up most of the previous session’s gains at the open.

The weak indication comes after a strong rally on Monday. The Nifty 50 rose 212 points, or 0.83 per cent, to close at 25,683, while the Sensex gained 650 points, or 0.79 per cent, to settle at 83,277.

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Asian markets trade mixed

Asian markets showed a mixed trend in early trade. Japan’s Nikkei 225 declined 0.4 per cent after weaker GDP data weighed on investor sentiment and raised concerns over economic growth.

In contrast, Australia’s S&P ASX 200 rose 0.64 per cent. Markets in mainland China, South Korea, Taiwan, and Singapore were closed due to Lunar New Year holidays, limiting broader regional cues.

US futures mixed after holiday closure

US stock futures traded mixed during Asian hours. Dow Jones futures were flat, while S&P 500 futures rose 0.05 per cent. Nasdaq 100 futures slipped 0.07 per cent.

US markets were closed on Monday due to a public holiday, which reduced global directional cues.

India VIX rises; FIIs remain net sellers

India VIX, which measures market volatility, rose for the third straight session and closed at 13.33. The rise suggests slightly higher caution among investors.

Foreign institutional investors (FIIs) increased their index futures long positions to 20.06 per cent from 19.27 per cent, indicating selective optimism. However, FIIs sold shares worth Rs 972 crore in the cash market. Overall, FIIs remained net sellers of Rs 499 crore across cash and futures segments.

Domestic institutional investors (DIIs) continued to support the market. They bought shares worth Rs 1,667 crore, marking the third consecutive session of buying.

Global indicators show mixed signals

The Indian rupee weakened slightly and closed at 90.65 against the US dollar. The US dollar index remained steady near 97 levels.

US bond yields stayed near 4.04 per cent, close to their lowest level in over two months. This reflects expectations of stable interest rates.

Commodity prices remained weak. Gold and silver declined, while copper and zinc also traded lower. Crude oil held near $68 per barrel.