GIFT Nifty Opens Lower, Signals Cautious Start for Indian Markets

Friday, July 11: Indian equity markets are poised for a cautious start today, as indicated by the GIFT Nifty opening lower. At 07:52 AM IST, GIFT Nifty was trading at 25,295.00, down by 41.50 points or 0.16%, having opened at 25,305.00, below its previous close of 25,336.50. The index has traded in a narrow range so far, between a low of 25,268.50 and a high of 25,316.00, reflecting subdued sentiment ahead of the domestic market opening.

This decline in the GIFT Nifty comes despite a strong overnight performance on Wall Street and mixed cues from Asian markets.

US Markets Close at Record Highs Despite Trade Concerns

Overnight, Wall Street witnessed both the S&P 500 and the Nasdaq Composite achieving record closing highs. This rally was primarily driven by an optimistic earnings outlook from Delta Air Lines and the continued surge of Nvidia, which, for the first time, surpassed a $4 trillion market valuation. Delta’s shares jumped by 12% following stronger-than-expected guidance, while Nvidia rose 0.7%, becoming the second-biggest contributor to the S&P 500’s gains.

Economic data also contributed to the positive sentiment, with US initial jobless claims falling to 227,000 for the week ending July 5. This figure was below the consensus estimate of 235,000, marking a seven-week low and suggesting a strengthening labour market.

Initial jobless claims refer to the number of people who have filed for unemployment benefits for the first time with their state’s unemployment agency during a specific reporting period (usually weekly). This economic indicator is closely watched as it provides a real-time gauge of the health of the US labour market. A fall in initial jobless claims generally suggests fewer people are losing their jobs, which is a positive sign for the economy.

Major US indices closed as follows:

• Dow Jones: +192.34 points (0.43%) to 44,650.64
• S&P 500: +17.20 points (0.27%) to 6,280.46
• Nasdaq Composite: +19.33 points (0.09%) to 20,630.67

Asian Markets Open Mixed; Hang Seng Leads Gains

In Asia, market sentiment was mixed. The Hang Seng index showed strength, rising by nearly 1% in early trade, while the Straits Times gained 0.5 per cent. Other indices across the region displayed modest movements, indicating cautious optimism rather than a broad-based rally.

Commodity Check: Oil Prices Stabilise After Tariff-Led Decline

Oil prices saw a slight recovery today after experiencing a 2% decline in the previous session. The earlier fall was primarily due to new tariffs announced by US President Donald Trump and a downgrade in OPEC’s demand forecast.

Brent Crude: +0.28% to $68.83 per barrel

• WTI Crude: +0.39% to $66.83 per barrel

Previous Session Recap: Market Ends in Red Ahead of TCS Results

Indian benchmark indices closed lower for a second consecutive session on July 10, largely due to broad-based selling pressure, particularly impacting IT and FMCG stocks. Concerns over US tariffs and cautious sentiment ahead of Tata Consultancy Services (TCS)’s Q1 FY26 earnings announcement contributed to the market’s decline.

• Sensex: -345.80 points (0.41%) to 83,190.28
• Nifty: -120.85 points (0.47%) to 25,355.25

Sectoral performance was weak across the board, with pharma, telecom, IT, PSU banks, and FMCG sectors all declining by around 0.5%. Midcap and smallcap indices also shed 0.3 per cent each, indicating broad market weakness.

Major losers from the previous session included Bharti Airtel, HDFC Life, Asian Paints, Apollo Hospitals, and Shriram Finance. Conversely, IndusInd Bank, Maruti Suzuki, Tata Steel, Bajaj Finance, and Bajaj Finserv were among the top gainers.

What’s Ahead for Today?

Indian markets may open cautiously today as GIFT Nifty trades 41 points lower, despite record highs on Wall Street. Investor focus will shift to Q1 FY26 earnings, with TCS set to announce results post-market. IT and FMCG stocks may remain under pressure after yesterday’s broad-based selloff. Stable oil prices and a stronger rupee could offer some relief. Stock-specific action is likely in Vedanta, IDFC First Bank (ex-dividend), and Nila Spaces. Overall, the day may see range-bound trade with selective buying.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations