Indian Markets Poised for Rebound as Global Sentiment Shifts
BENGALURU – Indian equity markets are expected to open in positive territory on Thursday, buoyed by a cooling in oil prices and a surge in technology stocks across Asia following a stellar earnings report from AI giant Nvidia.
Data from the GIFT Nifty futures indicated a firm start, trading at 24,360.50 points as of 8:12 a.m. IST, signaling a recovery from Wednesday’s session where the Nifty 50 finished at 24,207.75.
Oil Relief and Global Tech Tailwinds
The broader market sentiment has been significantly lifted by a retreat in energy costs. Benchmark Brent crude prices slipped 0.5% to $87.50 a barrel after reports surfaced that Iran is working with Oman to finalize a security agreement regarding the Strait of Hormuz. This development has eased long-standing investor anxieties regarding potential supply disruptions stemming from ongoing geopolitical tensions in the Middle East.
On the regional front, the MSCI’s broadest index of Asia-Pacific shares, excluding Japan, gained 0.7%. Much of this momentum is credited to a rally in the technology sector, triggered by Nvidia’s latest quarterly performance. The chipmaker reported that its revenue more than doubled, while its forward-looking guidance for the third quarter handily beat Wall Street expectations, reigniting optimism for the AI-driven tech cycle.
Domestic Market Dynamics
Despite the positive outlook for the open, analysts warn that today’s trading session could be volatile.
“The Sensex monthly expiry on Thursday is also expected to bring additional position adjustments and could amplify price moves towards the final hour, making the opening trend less reliable as a guide to the eventual close,” noted Hariselvan Radhakrishnan, founder and CEO of HST Wealth.
Market participants are also navigating a mixed global backdrop. While Asian markets are reacting to corporate strength, the macroeconomic picture in the United States remains complex. Annual U.S. inflation data released recently showed prices remaining elevated, holding above the Federal Reserve’s 2% target for the 65th consecutive month. This persistence has kept the debate alive regarding the Fed’s timeline for future interest rate adjustments.
Investor Flows and Key Stocks
Domestic indices Nifty and Sensex saw a 0.5% and 0.2% decline, respectively, on Wednesday, weighed down by heavy selling in IT stocks and Reliance Industries. However, the underlying appetite for Indian equities remains robust.
Foreign Portfolio Investors (FPIs) have remained net buyers for three consecutive sessions, pouring 5.03 billion rupees ($52.72 million) into the market on Wednesday alone. According to data from the National Securities Depository, overseas investors have injected $2.85 billion into Indian stocks so far in August, marking the highest monthly inflow since September 2024.
Stocks to Watch:
- Bharat Electronics: The company has secured new orders valued at 7.30 billion rupees since August 10.
- Juniper Green Energy: Reported a significant 54% year-on-year profit growth for the June quarter.
- Titagarh Rail Systems: Has entered into a non-binding agreement with Siemens to pursue collaborative opportunities for global metro projects.
As the Indian shares prepare to navigate the monthly expiry, traders will be closely watching for liquidity shifts and whether the early-morning optimism can withstand the volatility typical of expiry days.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng)
