Gift Nifty Today: Sensex and Nifty Set for Cautious Start as GIFT Nifty Trades Lower

The benchmark Indian equity indices, Sensex and Nifty 50, are expected to open on a cautious note on Thursday as investors track global market developments, crude oil movement and geopolitical updates. 

Market sentiment remained watchful despite strong gains across Asian and US markets, as rising oil prices and uncertainty surrounding geopolitical developments continued to keep investors cautious. 

On Wednesday, domestic equity markets ended sharply higher supported by broad-based buying across sectors. The NSE Nifty 50 surged 298 points, or 1.24%, to close at 24,330, while the BSE Sensex advanced 940 points, or 1.22%, to settle at 77,958. 

GIFT Nifty Signals Cautious Opening 

GIFT Nifty was trading 52 points, or 0.21%, lower at 24,465, indicating a subdued and cautious start for Indian benchmark indices. 

Asian Markets Rally Strongly 

Asian markets traded firmly higher on Thursday morning amid optimism surrounding a possible peace agreement between the United States and Iran. 

Japan’s Nikkei 225 surged 3.72% and crossed the historic 62,000 mark for the first time, while the Topix index gained 1.91%. South Korea’s Kospi rose 1.17%, although the small-cap Kosdaq index slipped 0.4%. 

US Markets End at Record Highs 

Wall Street ended Wednesday’s session on a positive note after reports suggested that the US and Iran were nearing an agreement to end the ongoing conflict. 

The S&P 500 climbed 1.46% to close at 7,365.12, while the Nasdaq Composite advanced 2.02% to finish at 25,838.94. Both indices touched fresh record highs during the session. The Dow Jones Industrial Average gained 612.34 points, or 1.24%, to settle at 49,910.59. 

Read More: India Shows Steady Resilience to Global Shocks, According to Moody’s! 

Crude Oil Prices Rebound 

Crude oil prices recovered after witnessing a sharp decline in the previous session. West Texas Intermediate (WTI) crude futures rose 1.24% to $96.23 per barrel, while Brent crude futures gained 0.92% to trade near $102.11 per barrel. 

On COMEX, crude oil prices also advanced 1.24% to trade at $96.26 per barrel. 

FII and DII Activity 

Foreign institutional investors (FIIs) remained net sellers on May 06, offloading equities worth Rs 4,882.15 crore, according to provisional NSE data. 

Domestic institutional investors (DIIs), however, continued to provide support to the markets as they purchased shares worth Rs 5,934.38 crore during the session. 

US Dollar and Rupee Movement 

The US Dollar Index (DXY), which measures the strength of the dollar against a basket of six major currencies, was marginally higher by 0.01% at 98.05. 

Meanwhile, the Indian rupee appreciated 0.71% to close at 94.61 against the US dollar on May 06. 

Conclusion 

Indian markets are likely to witness a cautious opening amid lower GIFT Nifty indications, even as strong global equity performance and easing geopolitical concerns offer some support to investor sentiment. Traders will continue to monitor crude oil prices, foreign fund activity and global developments for further market direction. 

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