GIFT Nifty points to flat start as U.S. markets slip
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Summary: GIFT Nifty expects a dismal start for Dalal Street with weak US cues and prudence.
The Indian markets were not likely to move at all when they opened on Wednesday. The GIFT Nifty futures barely moved in early trade in other countries. Traders were bracing for domestic action after weaker cues from U.S. markets, which closed in the red overnight, tempering risk appetite ahead of the opening bell.
Wall Street indices fell slightly in the previous session as investors scrutinised economic data and corporate profits, prompting cautious Asian trading. With global risk assets under pressure, Indian markets appeared to stay rangebound at the start of the day.
The relatively still GIFT Nifty suggests that both the Sensex and Nifty 50 may begin in a narrow band, keeping traders on their toes for clear direction. Analysts said it pointed to a session where stock-specific moves might matter more than broad market trends.
Macro-watchers were also parsing international cues for signs on inflation, geopolitical developments, and flows from foreign institutional investors, all of which have influenced sentiment this week. However, without fresh domestic triggers, the overall tone stayed cautious.
Domestic investors are expected to keep an eye on key sector performances, currency movements and global commodity prices — particularly crude — once trading gets underway. Early trading in defensive sectors such as healthcare and consumer staples could reflect a risk-off mood among participants.
In short, a subdued overnight session in the U.S. — echoed by a flat GIFT Nifty — set the stage for a tentative start in India, with most traders likely waiting for clearer signals before placing big bets in the market.
