Pre-Open Rebound Signals Mild Recovery as Oil Risks keep Investors on Edge

Mumbai, April 29: Markets traded higher at pre-open on Wednesday signalling a mild to positive start for shares on benchmark indices which declined yesterday amid an oil price surge and weak global cues.

Nifty was up 0.48% at 24,110.00 in pre-openwhereas Sensex was also up at 77,225, which is above yesterday’s close of 76,887, suggesting a positive start for the index.

Marching in tandem, the Gifty Nifty futures were up 0.17% at 24,107, also suggesting that the Nifty 50 could open above yesterday’s close of 23,996.

The positive pre-open signals come despite a largely cautious global backdrop. Asian markets traded mixed to lower, tracking overnight weakness on Wall Street, where technology stocks dragged indices down amid renewed concerns around the sustainability of the AI-led rally. European markets, too, ended on a subdued note, reflecting unease over stalled geopolitical negotiations and mixed corporate earnings.

A key overhang continues to be crude oil prices, which remain elevated due to persistent tensions in the Middle East. Higher oil prices pose a direct risk for India’s macroeconomic stability, with implications for inflation, currency movements and fiscal balances. This factor had weighed heavily on domestic markets in the previous session and remains a critical variable for near-term direction.

That said, the rebound in pre-open trade suggests investors may be looking to selectively buy into the dip, particularly after the sharp correction seen yesterday. The undertone, however, remains cautious, with global cues offering little in terms of a strong directional push.

Sectorally, IT stocks could remain under pressure in early trade, mirroring weakness in global technology shares, while oil-sensitive sectors such as aviation, paints and OMCs may stay in focus given the trajectory of crude prices. On the other hand, financials could lend some support if buying momentum sustains.

Overall, the pre-open indicators point to a tentative recovery at the start, but volatility is likely to remain elevated through the session. Much will hinge on the movement in crude oil prices and global market trends, which continue to act as key sentiment drivers.

In essence, the market appears set to open on a firmer note, attempting to steady itself after recent losses, though the broader mood remains one of cautious optimism rather than outright bullish conviction.

Source:

• Exchanges