Nifty Plunges 170 Points, Suggests Weaker Market Open

Indian Equity Markets Set to Open on a Subdued Note

The Indian equity markets are expected to open on a weak note on Thursday, with the GIFT Nifty trading at 24,088, down 168 points or 0.7 percent. This negative signal comes after a strong rebound in the previous session, as rising crude oil prices, weak global cues, and persistent geopolitical uncertainty weigh on sentiment.

Global Markets Tumble

Asian markets were largely trading lower in early trade, tracking overnight volatility on Wall Street. US markets ended mixed, with the Dow Jones Industrial Average falling over 0.5 percent. The S&P 500 and Nasdaq were largely flat, as investors grappled with the US Federal Reserve's policy decision and elevated oil prices. The Fed kept interest rates unchanged but flagged inflation as "elevated," highlighting the impact of rising energy costs and geopolitical tensions on its outlook.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Crude Oil Remains a Key Concern

Crude oil remains a key concern for markets. Brent crude surged sharply, briefly crossing the $120 per barrel mark, and continues to trade elevated amid stalled US-Iran negotiations and ongoing disruptions in the Strait of Hormuz. The spike in oil prices has reignited inflation concerns globally and is expected to weigh on import-dependent economies like India, limiting upside in equities.

Market Sentiment Remains Cautious

Back home, sentiment is expected to remain cautious despite Wednesday's gains, when the Sensex and Nifty rose around 0.8 percent each on broad-based buying. Foreign institutional investors (FIIs) extended their selling streak for an eighth consecutive session, offloading equities worth over Rs 2,400 crore, while domestic institutional investors (DIIs) continued to provide partial support. The rupee also remains under pressure, reflecting the impact of rising crude prices and sustained foreign outflows.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Market Expectations

Analysts expect markets to remain volatile and largely news-driven, with crude oil movements, geopolitical developments, and global central bank cues likely to dictate near-term direction. The ongoing Q4 earnings season and developments in AI-related global stocks may also drive stock-specific action.

Technical Perspective

From a technical perspective, the Nifty is seen trading near the 24,000-24,200 zone, with immediate resistance at 24,300-24,400 and support around 23,900-23,800. A decisive move beyond these levels will be crucial in determining the next directional trend for the market.

Comparison of Global Markets