Sensex, Nifty 50 Set for Positive Opening as GIFT Nifty Rises; Global Sentiment Improves

Wednesday, July 23: Indian equity markets are poised for a higher opening today, following early gains in GIFT Nifty and an overall improvement in global market sentiment. This optimism prevails despite continued foreign institutional investor (FII) outflows, largely offset by strong domestic institutional investor (DII) buying.

GIFT Nifty Trades Higher, Above 25,150

As of 8:30 AM IST on 23 July 2025, GIFT Nifty was trading at 25,170.50, up 20 points or 0.13%. This indicates a firm start for the domestic indices, the Sensex and Nifty 50. During early trade, the index opened at 25,126.50, touched a low of 25,126.50, and moved up to a high of 25,171.50. The sustained level above 25,150 suggests early buying interest as market participants integrate global macroeconomic signals.

FIIs Sell Again, But DIIs Provide Strong Support

Foreign Institutional Investors (FIIs) extended their selling streak in the previous session (22 July 2025), pulling out ₹3,548 crore worth of equities. This marks a continued trend of outflows from foreign funds in July, with over ₹18,600 crore in net sales for the month so far. However, Domestic Institutional Investors (DIIs) provided strong countervailing support, continuing their buying spree for the 12th consecutive session and infusing ₹5,239 crore into the markets. This sustained domestic buying has been crucial in cushioning the impact of FII selling pressure.

Global Cues: Mostly Constructive

Global markets presented a mixed but generally constructive picture ahead of India’s market opening:

• US Markets: On 22 July 2025, the S&P 500 edged up 0.06% to close at a fresh record high. The Dow Jones Industrial Average also gained 0.40%. However, the Nasdaq Composite slipped 0.39%, ending its six-session streak of record closes, indicating stock-specific reactions to earnings reports. Homebuilder stocks like D.R. Horton and PulteGroup surged on strong Q2 profits, while Lockheed Martin tumbled due to reported losses in its programs.
• Asian Equities: Asian markets traded higher today, buoyed by a breakthrough US-Japan trade deal, which helped ease tariff concerns and lifted overall regional sentiment. South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all closed positively in their previous sessions.
• Crude Oil: Prices firmed up following a decline in US stockpiles and renewed optimism around global trade, supporting energy counters. However, on 22 July, crude oil futures eased slightly amid weak demand in the spot market, with West Texas Intermediate (WTI) trading around USD 66.60 per barrel and Brent Crude near USD 68.71 per barrel.
• Gold: Gold traded lower near USD 3,427/oz as risk appetite improved globally. In India, however, gold prices saw a sharp uptick on 22 July, with 24K gold rising to ₹10,129 per 10 grams in Mumbai, reflecting sustained domestic investor interest.
• Bond Yields: The US 10-year Treasury yield rose to 4.35%, while the 2-year yield edged up to 3.83%, indicating cautious optimism in the fixed income space as investors assess inflation and future interest rate expectations.
• Currency Markets: Asian currencies broadly gained against the US Dollar, led by the Philippine Peso and Taiwan Dollar, while the Dollar Index hovered near 97.38, reflecting some softening of the greenback.

Market Snapshot: Previous Session Recap

On July 22, benchmark indices ended flat to slightly negative as investors booked profits.

• Sensex: Down 13.53 points at 82,186.81
• Nifty 50: Down 29.80 points at 25,060.90
• BSE Midcap: Shed 0.6%
• BSE Smallcap: Ended marginally lower

How Is The Day Looking For Investors?

The outlook for July 23 appears cautiously optimistic for Indian investors. With GIFT Nifty trading above 25,150 and strong global cues, particularly from the US and Asian markets, are expected to drive a positive start. Despite persistent FII outflows, robust DII buying provides stability. Sector-specific action may be driven by global trade optimism and firm crude prices. Mid- and small-cap segments may remain subdued, so large caps could attract more interest. Overall, investors can expect a mildly bullish bias with a stock-specific focus, especially around earnings and macro-driven plays.

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