Indian equity markets are likely to open on a flattish note on Wednesday. Gift Nifty at 26,390 signals a positive opening of about 50 points.
Ponmudi R, CEO of Enrich Money, said domestic equity markets are set for a mildly positive yet range-bound start, with GIFT Nifty signalling early strength. “Market attention is expected to centre on weekly options expiry-related flows and evolving expectations around the upcoming Q3 earnings season. While broader sentiment remains guarded amid recent bouts of volatility driven by geopolitical developments and tariff-related concerns, underlying support continues to come from stable domestic macro fundamentals and steady institutional participation,” he said.
Selling by foreign portfolio investors is a cause for concern, said analysts. The US President, Donald Trump, who has made moves, especially on tariffs, will be closely watched, added analysts.
Government capex remains healthy in 8MFY26, led by defence, with railways expected to pick up over the next few quarters.
Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said: Overall, we expect markets to remain firm with a positive bias, supported by better-than-expected Q3 business updates and expectations of a capex pickup ahead of the Union Budget, though there could be some volatility on the back of global geopolitical developments.
Derivative trading indicates a cautious outlook.
Volatility remained elevated during the session, with India VIX rising 6.06 per cent to 10.02. Going ahead, a sustained close above the 26,300 zone would be required to revive bullish momentum in the Nifty, while failure to reclaim this level could keep the market in a consolidation-to-corrective phase in the near term, said Aakash Shah, Technical Research Analyst and Choice Broking.
Meanwhile, Asian stocks are mixed in early trading on Tuesday, despite a strong overnight close in the US.