Indian equity markets are set for a positive opening on Monday, as suggested by GIFT Nifty (formerly SGX Nifty). After enduring a challenging week, traders and investors are eyeing recovery zones while closely monitoring global cues and macroeconomic signals.

State of the markets

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GIFT Nifty: GIFT Nifty traded higher by 147.5 points, or 0.62 per cent, at 23,783.50, signalling optimism for Dalal Street’s opening session.
India VIX: The volatility index rose 3.88 per cent to close at 15.07 on Friday, reflecting heightened market fears.

Global cues

US markets: Wall Street ended last week on a strong note, buoyed by a cooler-than-expected inflation report and dovish comments from the Federal Reserve.
Asian shares: Markets across Asia showed gains:

Hang Seng futures up 1 percent

Japan’s Topix rose 0.4 percent

Australia’s S&P/ASX 200 advanced 0.7 per cent

Commodities

Gold: Spot gold held steady on Monday after gains on Friday, supported by a softer US dollar and declining Treasury yields.

Currency check

The rupee rebounded by 9 paise to close at 85.04 against the US dollar on Friday, supported by RBI intervention and a weaker dollar index.

FII/DII action

Foreign investors were net sellers, pulling out Rs 3,598 crore on Friday, while domestic institutional investors purchased equities worth Rs 1,374 crore.

Outlook

With GIFT Nifty signalling a rebound and easing global inflation concerns, Indian markets could stage a recovery. However, traders should remain cautious amid elevated volatility.