GIFT Nifty futures hint a muted start; Asian shares dip amid global uncertainty

Indian equities ended sharply lower on Thursday, driven by the monthly F&O expiry and negative global cues. Concerns over escalating tensions in the Russia-Ukraine conflict and uncertainty surrounding the trajectory of US interest rates, following mixed economic data, weighed on investor sentiment.

Pre-market trends

• GIFT Nifty: GIFT Nifty traded marginally higher by 3 points at 24,123, signalling a subdued start for domestic markets.

• India VIX: The volatility index rose four per cent to settle at 15.20, reflecting rising market apprehensions.

Technical view
The Nifty continues to face resistance around the 24,350-24,360 levels. Hrishikesh Yedve of Asit C. Mehta Investment Intermediates advised traders to adopt a cautious approach, focusing on profit booking during bounces while awaiting a decisive breakout.

Global market check

• Asia: Japanese Topix and Australia’s S&P/ASX 200 dipped 0.3 per cent and 0.6 per cent, respectively, reflecting weak sentiment. However, Hang Seng futures rose 0.3 percent.

• Europe: European markets rebounded, led by tech stocks, while inflation data remains a key focus for investors.

FII/DII activity
Foreign institutional investors (FIIs) were net sellers, offloading Rs 11,756 crore worth of equities. Domestic institutional investors (DIIs), however, provided support with net purchases worth Rs 8,178 crore.

Rupee performance
The Indian rupee weakened by 7 paise to close at Rs 84.47 against the US dollar on Thursday, as a stronger greenback and weak domestic equities exerted pressure.

Stocks in F&O ban
No stocks are under the F&O ban for today’s session.

Outlook
Muted global cues and heightened volatility are expected to keep markets range-bound. Investors should adopt a stock-specific strategy and closely monitor geopolitical developments and US economic data.