GIFT Nifty down 75 points, Asian indices trade lower; Markets signal a negative start
GIFT Nifty dips, Asian indices slide; volatility spikes with India VIX up over six percent-key levels to watch as traders navigate global uncertainties and cautious sentiment dominates Thursdays pre-market action.
GIFT Nifty hinted at a weak opening for Indian markets today, trading 78 points down at 23,593. The index reflects ongoing bearish sentiment, following a sharp sell-off during the latter half of the previous session. Despite strong sectoral performances in realty, auto, and pharma, overall trends remained mixed.
Global markets update
U.S. Stocks: Wall Street ended mixed, with the Dow gaining 0.32 per cent while the Nasdaq dipped by 0.11 per cent, weighed down by concerns over escalating geopolitical tensions and disappointing forecasts from Nvidia. Investors remained cautious ahead of key data releases.
Asia: Asian equities mirrored the cautious sentiment, with major indices such as Hang Seng futures declining 0.5 per cent and Japan's Topix falling 0.2 per cent. Australia’s S&P/ASX 200 bucked the trend, inching up by 0.1 per cent.
Domestic cues
The India VIX rose 6.6 per cent to 16.18, reflecting increased market volatility. Foreign investors turned net sellers, offloading Rs 3,411 crore worth of equities, while domestic institutional investors provided some cushion, buying shares worth Rs 2,784 crore.
F&O Ban List
Six stocks are in the F&O ban period today, including ABFRL, Granules, GNFC, Hindustan Copper, Aarti Industries, and IGL. These securities have surpassed 95 per cent of the market-wide position limit, restricting further trades in the derivatives segment.
Currency and commodities
The rupee remained flat at 84.42 against the U.S. dollar, with opposing forces of lower crude prices and continued foreign fund outflows keeping the currency in a narrow range.
Market participants are keeping an eye on the 23,780-23,800 resistance range for the GIFT Nifty, with support placed around the 23,300 mark. Any breach on either side could dictate short-term momentum.
Traders are advised to adopt a cautious stance amid mixed global cues and heightened volatility, focusing on stock-specific strategies for better returns.
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