Nifty Posts 80-Point Rally, Suggests Mild Market Recovery; Oil Price Hike and Foreign Investor Selling May Limit Gains

Indian Markets Signal Tentative Rebound Amid Ongoing Concerns

The GIFT Nifty traded higher on Friday, indicating a mildly positive start for Indian markets, despite elevated crude oil prices, continued foreign selling, and weak global cues. The benchmark index was trading around 24,238, up about 80 points or 0.33 percent, suggesting that the Sensex and Nifty may open slightly higher after declining for two consecutive sessions.

The uptick in GIFT Nifty suggests a mild recovery at the open, following the recent correction that saw benchmark indices decline nearly 2 percent over the last two sessions. This tentative rebound is a welcome sign, but investors remain cautious due to ongoing concerns.

Crude oil prices continued to rise, with Brent crude climbing above $106 per barrel amid fresh geopolitical tensions and fears of supply disruption in the Strait of Hormuz. The sustained rally in oil prices remains a significant drag for Indian equities, raising concerns over inflation and macro stability.

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Fresh developments in the Middle East, including reports of Iranian military activity in the Strait of Hormuz and heightened defense engagement, have increased fears of escalation. The lack of progress in US-Iran negotiations continues to weigh on investor confidence and keep markets on edge.

Asian markets traded mixed, with most indices in the red despite some gains in Japan, reflecting caution among investors. US equities also ended lower overnight, with losses in the Nasdaq driven by concerns around AI-related earnings and broader geopolitical risks.

Foreign institutional investors extended their selling streak for the fourth consecutive session, offloading over Rs 3,200 crore. Domestic institutional investors provided modest support, but persistent FII outflows remain a key pressure point for the market.

Weak earnings outlook from Infosys and broader concerns around the IT sector continue to weigh on sentiment, with technology stocks likely to remain under pressure.

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

The Nifty is trading near the 24,100-24,200 zone, with immediate resistance at 24,300-24,400, according to technical analysts. Failure to reclaim these levels could limit upside, while a break below 24,000 may trigger further downside.

Markets are expected to remain volatile and news-driven, with ongoing Q4 earnings announcements likely to drive stock-specific movements, even as broader indices remain sensitive to macro developments.

Comparison of Recent Market Performance

Note: The comparison is based on the previous and current session's performance.