GIFT Nifty rises, signals positive start for Sensex, Nifty; Asian tech rally, Wall Street surge lift sentiment

Indian benchmark indices Sensex and Nifty are likely to open higher on Tuesday, with GIFT Nifty pointing to a positive start as a technology-led rally across Asian markets and strong overnight gains on Wall Street bolster sentiment. Crude oil has also retreated sharply from recent highs amid hopes of progress in potential US-Iran talks, although Brent remains above $100 a barrel.

GIFT Nifty was trading at 23,499 around 8 am, up 59 points, or 0.25 percent. Indian markets enter Tuesday’s session after extending their recovery to a fourth consecutive day. The Sensex gained 564.03 points, or 0.76 percent, to 74,858.99 on Monday, while the Nifty rose 67.90 points, or 0.29 percent, to 23,414.30.

The global backdrop has also improved, with US technology stocks rallying sharply, Treasury yields retreating from recent highs and crude oil well below the levels seen earlier this month.

Asian markets rally, tech stocks lead gains

Asian equities advanced on Tuesday, led by technology stocks as lower oil prices and hopes surrounding potential US-Iran talks supported risk appetite. The technology-led gains across Asia follow strong overnight buying in US artificial-intelligence stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed more than 1 percent in early trading. South Korea’s tech-heavy market jumped nearly 2 percent, while Taiwan equities gained 1.3 percent. China’s blue-chip index advanced 0.75 percent and Hong Kong’s Hang Seng rose 0.4 percent. Japanese markets were closed for a holiday.

US equity futures also remained positive following Monday’s sharp Wall Street rally, with Nasdaq futures up 0.37 percent.

Nasdaq surges to record high, S&P 500 jumps 1.5%

Wall Street rallied sharply on Monday helped by gains in Advanced Micro Devices and other AI-linked stocks and lower crude oil prices. The retreat in Treasury yields from recent highs provided additional support to equities after rising borrowing costs had been a major concern for global markets in recent weeks.

The Nasdaq Composite surged 2.26 percent to a record closing high of 27,122.09, its first record close since June 2. The S&P 500 jumped 1.49 percent to 7,764.70, ending around 0.4 percent below its August 13 record closing high. The Dow Jones Industrial Average gained 0.71 percent to 52,048.83.

Brent near $100 as investors watch potential US-Iran talks

Crude oil edged higher on Tuesday after several sessions of declines, but remained substantially below its recent highs as investors awaited developments around possible US-Iran talks at the United Nations General Assembly this week.

Brent crude futures for November gained 0.22 percent to $100.57 a barrel, while WTI’s November contract edged 0.14 percent higher to $92.49.

The possibility of progress in US-Iran talks has helped ease some of the supply concerns that drove oil sharply higher earlier this month. Crude prices had tumbled to an 11-day low on Monday amid speculation about a potential breakthrough in Middle East discussions.

FIIs sell, DIIs continue buying

Institutional flows remained mixed in the previous session. Foreign institutional investors (FIIs) sold Indian equities worth Rs 576 crore on September 21. Domestic institutional investors (DIIs), meanwhile, continued to provide support, purchasing equities worth Rs 2,800 crore during the session.

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