Nifty Falls 125 Points Amid Weak Global Cues and Elevated Oil Prices

Indian Markets Face Weak Start Amid Global Uncertainty

The Indian markets, as represented by the GIFT Nifty, began the day on a weak note, with a decline of 125 points, or 0.51 percent, to trade around 24,450. This downward trend suggests that the Sensex and Nifty may open lower after ending higher for the third consecutive session on Tuesday.

The sharp decline in the GIFT Nifty indicates a negative start for domestic equities, following a recent rally that pushed benchmark indices to multi-day highs. This shift in market sentiment is attributed to a combination of factors, including pressure from global equities and elevated crude oil prices.

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Asian markets edged lower in early trade, with the MSCI Asia-Pacific index slipping, as investors assessed the longevity of the Middle East conflict. The cautious tone followed losses on Wall Street, where the Dow Jones, S&P 500, and Nasdaq all closed lower as geopolitical concerns overshadowed earnings optimism.

Crude oil prices eased marginally but remained elevated, with Brent crude hovering near the $98 per barrel mark. Concerns over supply disruptions due to tensions around the Strait of Hormuz continue to cap upside for equities, especially in oil-importing economies like India.

The situation is further complicated by the ongoing uncertainty surrounding the Iran ceasefire, which was extended by US President Donald Trump. While this decision has provided some support to global sentiment, investors remain cautious due to concerns over the truce's longevity.

Foreign institutional investors extended their selling streak for the second consecutive session, offloading equities worth nearly Rs 2,000 crore. Conversely, domestic institutional investors continued to provide support through buying.

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Indian markets have rallied for three straight sessions, with the Nifty closing above the 24,500 mark. Analysts expect some consolidation or profit booking at higher levels amid global uncertainty.

The Nifty is currently trading near the 24,500-24,600 zone, with immediate support seen at 24,400–24,300 and resistance around 24,600. A sustained move above resistance is needed to extend the rally, while failure to hold support could trigger a pullback. The Bank Nifty continues to show strength, trading near key resistance levels, supported by banking heavyweights and earnings momentum. However, a breakout above 57,500 is required for further upside.