Indian equity markets are poised for a cautious opening on Tuesday, as indicated by GIFT Nifty's early movements. On Monday, benchmark indices ended in the red for the second straight session, driven by weakness in FMCG and auto stocks. The S&P BSE Sensex settled at 81,508.46, down 200.66 points or 0.25 per cent, while the Nifty50 closed at 24,619, shedding 58.80 points or 0.24 per cent.

State of the markets

  • GIFT Nifty: The index was trading 11 points or 0.04 per cent higher at 24,716.50, signalling a muted start for domestic equities.
  • India VIX: The volatility index declined marginally by 0.22 percent to 14.11, indicating reduced market fear.

Global cues

  • Wall Street: US markets ended lower as declines in Nvidia dragged tech stocks. The Dow Jones fell 0.54 per cent, the S&P 500 dipped 0.61 per cent, and the Nasdaq slid 0.62 per cent.
  • Asian markets: Most Asian indices traded higher, buoyed by optimism over China's anticipated stimulus measures. The Hang Seng futures gained 3.4 per cent, while Japan's Topix was up 0.4 per cent. However, Australia's S&P/ASX 200 dropped 0.4 percent.

Institutional activity

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Foreign institutional investors (FIIs) were net buyers, purchasing shares worth Rs 724.27 crore. On the other hand, domestic institutional investors (DIIs) were net sellers, offloading equities worth Rs 1,648.07 crore.

Rupee watch

The Indian rupee closed at 84.73 against the US dollar, slipping from 84.6875 in the previous session. Analysts expect the local currency to face continued pressure due to the strength of the US dollar and weak regional currencies.

With global markets providing mixed cues and limited domestic triggers this week, Indian indices are expected to trade within a range, awaiting clarity from macroeconomic developments and FII trends.