Nifty Signals Higher Start for Indian Markets as Oil Prices Ease and Asian Stocks Rise

Indian Markets Poised for Positive Start Amid Easing Oil Prices and Global Support

The Indian markets are set to open on a positive note on Monday, tracking gains in GIFT Nifty, which rose 112 points or 0.46 percent to 24,259 in early trade, indicating a firm start for benchmark indices after a volatile previous session. Despite lingering geopolitical uncertainty, easing crude oil prices and supportive global markets offered some relief to investors.

The Brent crude price slipped below recent highs to hover near the $107 per barrel mark after U.S. President Donald Trump announced efforts to free up ships stranded in the Strait of Hormuz. However, the absence of a peace deal between the U.S. and Iran continues to keep a risk premium in oil prices. This development has provided some respite to investors, who are closely watching the global market cues.

Global Markets Trade Higher

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Global cues were largely supportive, with Asian markets trading higher. The MSCI Asia-Pacific index rose 0.6 percent, and South Korea's Kospi jumped 2.6 percent, supported by strong corporate earnings and optimism around technology stocks. US markets also ended mixed to positive on Friday, with the S&P 500 and Nasdaq closing at record highs, buoyed by robust earnings and a pullback in crude prices.

State Elections and Market Sentiment

Back home, investors are closely tracking key state election results, particularly in West Bengal, where vote counting is underway. While state elections typically have limited structural impact on markets, outcomes that align with expectations could support sentiment, while any surprises may trigger short-term volatility.

Underlying Risks Remain

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However, underlying risks remain. Elevated crude oil prices, despite the recent dip, continue to pose inflationary concerns, while persistent foreign institutional investor (FII) outflows remain a key overhang. FIIs extended their selling streak for the ninth consecutive session in the previous trading session, although domestic institutional investors (DIIs) continued to provide support.

Market Participants Remain Cautious

Market participants are expected to remain cautious ahead of a busy week of global and domestic triggers, including earnings announcements and macroeconomic data releases. While early indicators suggest a positive start, the market is likely to remain volatile and highly sensitive to developments in crude oil prices, geopolitical tensions, institutional flows, and election outcomes.