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Key Factors Driving Indian Markets Today
New Delhi: Indian equity benchmarks are expected to start Tuesday on a weaker note, as early indicators suggest caution among investors. GIFT Nifty futures were trading at 24,002 in early trade, pointing to a potential dip below the previous close of 24,092.70.
On Monday, both the Sensex and Nifty 50 broke a three-day losing streak, supported by a rebound in information technology stocks. The recovery followed a sharp correction in the IT sector last week, which had weighed heavily on market sentiment.
Despite the recent gains, broader market momentum remains fragile. Ongoing geopolitical tensions, especially around the Strait of Hormuz, continue to influence investor sentiment. The region is critical for global energy supply, handling nearly 20% of worldwide oil shipments.
Crude oil prices remain elevated, with Brent crude hovering near $109 per barrel. Higher oil prices pose significant challenges for India, increasing inflation risks, widening the trade deficit, and putting pressure on corporate profitability.
Foreign portfolio investors (FPIs) continued their selling trend, offloading shares worth ₹1,151 crore on Monday. This marks the sixth consecutive session of net selling, reflecting global risk aversion.
In contrast, domestic institutional investors (DIIs) remained net buyers, purchasing equities worth ₹4,124 crore. Their continued participation has helped cushion the market from sharper declines.
Market direction is likely to be influenced by global cues, oil price movements, and institutional flows. Investors may remain cautious as uncertainty in global markets persists.
