Nifty Surges Amid Crude Price Decline and Asia's Market Rebound

Indian Markets Open Higher Amid Crude Oil Price Drop and Asian Equities Rebound

The GIFT Nifty traded moderately higher on Tuesday, indicating a positive start for Indian markets, supported by easing crude oil prices and a rebound in Asian equities. Lingering geopolitical uncertainty and recent foreign outflows kept sentiment cautious though. The GIFT Nifty was trading around 24,409, up about 67 points or 0.28 percent in the morning session, suggesting the Sensex and Nifty may open higher after ending largely flat in the previous session.

Crude oil prices eased after Monday's sharp surge, with Brent crude slipping to around $94-95 per barrel on expectations that the US and Iran may resume peace talks this week. The decline in crude has provided some relief to global markets, particularly for oil-importing economies like India, though risks around supply disruptions persist.

Global cues were mixed but showed signs of stability. Asian markets rebounded in early trade, with Japan's Nikkei rising over 1 percent and South Korea's Kospi hitting a fresh record high, supported by optimism around potential diplomatic progress and continued demand for AI-linked stocks. MSCI's Asia-Pacific index also advanced.

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Meanwhile, overnight US markets closed slightly lower, with the S&P 500, Dow Jones, and Nasdaq slipping marginally as investors remained cautious about the durability of the US-Iran ceasefire. The Nasdaq also snapped its 13-day winning streak.

Back home, Indian markets had ended flat-to-positive on Monday after a volatile session, with the Sensex and Nifty giving up most of their intraday gains amid rising oil prices and geopolitical concerns. Institutional flows remain a key monitorable, with foreign institutional investors (FIIs) turning net sellers in the previous session, offloading equities worth over Rs 1,000 crore, while domestic institutional investors (DIIs) continued to provide support with buying of nearly Rs 3,000 crore.

Analysts expect a mildly positive but range-bound start. According to analysts, the Nifty continues to hold above the 24,300 zone, indicating a near-term positive bias, though momentum is slowing. Immediate resistance is seen around 24,450-24,500, while support is placed near 24,150-24,200.

The ongoing Q4 earnings season is also expected to drive stock-specific action, particularly in heavyweight sectors such as banking and financials, which could lend support to the indices.

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