GIFT Nifty up 5 points; D-Street likely to open flat amid global cues

Indian equity markets are set for a muted opening on Thursday as GIFT Nifty edged up 5 points, mirroring cautious sentiment across global indices. The underlying trend remains range-bound, with key resistance at 22,700 and support at 22,300. Market participants will watch domestic macroeconomic indicators for further direction.

Global market snapshot

Wall Street closed higher overnight as lower-than-expected US inflation data eased fears of aggressive rate hikes. The Nasdaq led gains with a 1.22 per cent jump, while the S&P 500 added 0.49 per cent. However, the Dow Jones slipped 0.20 per cent, reflecting concerns over escalating trade tensions.

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Asian markets followed suit, with Japan’s Topix gaining 0.7 per cent and Australia’s ASX 200 advancing 0.3 per cent. Euro Stoxx 50 futures also pointed to a firm opening in Europe.

Domestic market outlook

The Indian market ended slightly lower on Wednesday as volatility spiked due to the US tariff flare-up. Analysts expect near-term consolidation with sectoral rotation playing a key role. Positive cues from easing domestic inflation and steady industrial growth could provide support.

India VIX, the fear gauge, dropped 2.7 per cent to 13.69, signaling reduced market anxiety. However, traders remain cautious as foreign institutional investors (FIIs) increased their net short positions, rising to Rs 1.83 lakh crore from Rs 1.78 lakh crore a day earlier.

FII-DII action

Foreign investors turned net sellers, offloading shares worth Rs 1,628 crore on Wednesday, while domestic institutional investors (DIIs) stepped in with net purchases of Rs 1,510 crore. The rupee remained stable, closing at 87.22 per dollar after a marginal 1-paisa dip.

Stocks in F&O ban

The following stocks remain in the F&O ban list:

• Manappuram Finance
• Hindustan Copper
• BSE Ltd
• IndusInd Bank
• SAIL

These stocks have breached 95 per cent of the market-wide position limit, restricting fresh positions.

Gold remains firm

Gold prices edged higher as trade uncertainties fueled safe-haven demand. The commodity also gained strength as US inflation data bolstered rate-cut expectations.

With global cues mixed and domestic macro data providing some relief, the markets may see sideways movement with stock-specific action dominating trade.