GIFT Nifty futures hint at muted start; Asian markets remain upbeat

The domestic stock market is set for a cautious opening as GIFT Nifty signals a subdued start, reflecting ongoing global uncertainty. On Tuesday, Nifty futures on the GIFT Nifty platform rose a modest 15 points to 24,428, suggesting a lacklustre opening for Indian equities.

The market sentiment improved slightly after Nifty managed to hold above the key 23,870 mark in the previous session.

Volatility creeps up

India VIX, the volatility gauge, spiked by 1.9 per cent on Monday to settle at 14.70, reflecting heightened uncertainty amid a mixed global outlook.

Global markets update

Asian markets showed signs of optimism, with Australia’s S&P/ASX 200 up 0.6 per cent in early trading. Meanwhile, S&P 500 futures and Hang Seng futures were largely unchanged, signaling caution among investors.

Forex and rupee woes

The rupee closed at a record low of 84.72 against the US dollar, slipping 12 paise due to weak domestic macroeconomic data and strength in the dollar. The euro, yen, and offshore yuan were relatively stable against the greenback.

FII/DII action

Foreign portfolio investors (FPIs) turned net sellers on Monday, offloading Rs 238 crore worth of equities. In contrast, domestic institutional investors (DIIs) pumped in Rs 3,589 crore, showcasing confidence in local markets despite global headwinds.

Stocks in F&O ban

RBL Bank remains in the F&O ban list today, with its security breaching the 95 per cent market-wide position limit.

Key takeaways

While the domestic market closed higher on Monday, broader concerns over slowing GDP growth persist. Analysts predict a consolidation phase for Indian markets amid mixed signals globally. A break above the 24,500 resistance could spark fresh buying, while a fall below 23,870 may attract selling pressure.