Cautious Optimism on Dalal Street - GIFT Nifty Indicates Flat-to-Positive Start; Benchmarks Eye Recovery While Global Cues Remain Mixed

Mumbai, July 25 – Indian equity markets are poised for a flat-to-mildly positive opening on Friday, July 25, with GIFT Nifty indicating a stable start. The index was trading at 24,968, the same as the previous day’s close as of 7:53 AM. It moved in a narrow range, marking a high of 24,999.50 and a low of 24,952.50, reflecting subdued but steady sentiment in pre-market trade.

Market Recap: Benchmarks Slide as Selling Pressure Resurfaces

On July 24, domestic benchmarks reversed previous session gains amid widespread profit booking. Subsequently, Sensex declined 542.47 points to close at 82,184.17, down 0.66% and Nifty 50 lost 157.80 points, ending at 25,062.10, down 0.63%. Despite the fall, defensive buying in pharma and PSU banks helped contain losses in an otherwise weak session.

What GIFT Nifty is Signalling Today

The GIFT Nifty’s modest uptick suggests investors are awaiting clarity from global and institutional triggers before making aggressive moves. The marginal gain comes after Thursday’s sharp losses, hinting at a possible technical rebound or sideways consolidation during the day.

Global Market Snapshot

US Markets: Mixed Finish

U.S. markets ended mixed on Thursday, with the S&P 500 inching up 0.07% to close at 6,363.35 and the Nasdaq gaining 0.18% to settle at 21,057.96, while the Dow Jones slipped 0.70%, finishing at 44,693.91. Positive earnings from Alphabet supported AI-linked stocks, but Tesla’s weak numbers dragged broader indices lower.

Asian Markets Opened Weak

Asian markets began Friday with caution, breaking their recent winning streak, as uncertainty loomed over future US rate decisions.

US Yields & Dollar

Bond yields were marginally lower in early trade while the Dollar Index firmed at 97.46, up 0.06%, though still set for a weekly decline. The slight uptick in the dollar reflects cautious investor sentiment amid mixed global cues.

Commodities

Crude oil prices advanced on Thursday, supported by optimism around U.S.-EU trade talks and the possibility of fresh Russian fuel export curbs. Meanwhile, gold and silver traded flat, as markets lacked clear directional cues amid muted demand for safe-haven assets.

Institutional Trends: FIIs Exit, DIIs Step In

As of July 24, Foreign Institutional Investors (FIIs) continued their selling streak with net outflows of ₹2,133.69 crore, while Domestic Institutional Investors (DIIs) stepped in with net inflows of ₹2,617.14 crore. This indicates sustained profit-booking by FIIs, while domestic investors are cushioning the market with steady buying. DIIs remained active buyers, absorbing FII selling pressure and helping stabilise the markets.

Market Outlook

With GIFT Nifty indicating a steady to mildly positive open, Indian indices may attempt a technical bounce. However, global uncertainty, persistent FII outflows, and narrow intraday ranges could cap sharp moves. Focus will remain on support at Nifty 25,060 and any sector-specific action led by defensive pockets.

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