Today’s trade assumes added significance as it coincides with Nifty’s weekly expiry and the final trading session of the June quarter, factors that are expected to keep volatility elevated throughout the day.
GIFT Nifty Signals Positive Opening
Early indicators suggest Indian benchmark indices could begin the session on a mildly positive note.
GIFT Nifty was trading at 23,999.50, up 0.25%, indicating a flat-to-positive opening and raising hopes of the Nifty reclaiming the psychologically important 24,000 mark after spending the previous two sessions below that level.
While the positive indication offers some relief following Monday’s decline, traders are expected to remain cautious due to expiry-related positioning and quarter-end portfolio adjustments.
Monday’s Market Recap: Sensex, Nifty End Lower
Indian equities ended Monday’s session in the red as selling pressure intensified in select heavyweight sectors.
The BSE Sensex declined 372 points, while the Nifty 50 slipped below the 23,950 mark, weighed down primarily by losses in PSU banking and media stocks.
Among individual stocks, Persistent Systems emerged as the biggest loser of the day.
The IT major plunged nearly 11% to hit a 52-week low after announcing its €1.27 billion acquisition of Nagarro, a move that triggered concerns among brokerages over the valuation and integration risks.
Brokerage firm Nuvama responded by slashing its target price on the stock by more than ₹1,000, describing the acquisition as expensive despite acknowledging its long-term strategic benefits.
The sharp correction in Persistent Systems contributed significantly to the weakness witnessed in the broader IT pack.
Wall Street Hits Fresh Record Highs
While Indian markets struggled, sentiment on Wall Street remained firmly positive overnight.
The Dow Jones Industrial Average crossed the historic 52,000 mark for the first time, extending its record-setting run.
The S&P 500 advanced 1.18%, while the technology-heavy Nasdaq Composite surged more than 2%, driven by renewed enthusiasm surrounding artificial intelligence-linked stocks.
Technology giant Alphabet climbed nearly 5% after officially joining the Dow Jones index, replacing Verizon as one of its components.
Meanwhile, Tesla rallied 8.45%, adding to the strength in the broader technology sector as investors returned to growth-oriented stocks.
Easing Geopolitical Concerns Lift Global Sentiment
Investor confidence also received support from easing geopolitical tensions in the Middle East.
Market sentiment improved after reports indicated fresh diplomatic talks between the United States and Iran are scheduled to take place in Doha later today.
The prospect of renewed negotiations has helped reduce immediate concerns over regional instability, providing additional support to global equity markets.
Key Factors To Watch Today
Market participants will closely monitor several developments during today’s session:
- Nifty’s weekly expiry and associated volatility
- Quarter-end portfolio rebalancing by institutional investors
- Global market cues following Wall Street’s record rally
- Movement in IT stocks after Persistent Systems’ sharp decline
- Developments from the US-Iran talks in Doha
- Foreign institutional investor (FII) and domestic institutional investor (DII) activity
With expiry-related positioning, quarter-end adjustments and supportive global cues all converging, today’s session is expected to remain highly active as investors look for direction heading into the new quarter.