Stock markets are likely to open higher on Thursday, extending the gains seen in the previous session, supported by easing oil prices and improving global cues. However, key risks remain, which could impact the direction of the market during the day.
Early indicators suggest a positive start. GIFT Nifty futures were trading at 24,317.5 at 7:59 am, pointing to an opening above Wednesday’s close of 24,231.3 for the Nifty 50.
“The market setup suggests a positive to range-bound start, supported by global cues and strength in GIFT Nifty. However, after the recent sharp rally, the market may witness some consolidation or profit booking at higher levels. Sustaining above the 24,450–24,500 zone will be crucial for further upside momentum,” said Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited.
Asian markets were trading higher, with the broader index gaining 0.7%. This follows a strong session on Wall Street and reflects improved investor confidence globally.
On Wednesday, markets had rallied sharply. Both the and Nifty 50 rose 1.6% to hit a one-month high. The rally came after signals that .
Oil prices remain a key factor for the market. As of 8:30 am, Brent crude was trading at $94.95, up 0.02%, while WTI crude stood at $91.44, up 0.16%.
Brent has slipped below the $95 mark after reports that Iran may allow ships to pass through the Strait of Hormuz. This has helped ease concerns around supply disruptions.
Lower crude prices are positive for India, as the country depends heavily on oil imports. Softer oil prices help reduce the import bill, ease inflation and support company earnings.
However, risks are still present. The US shipping blockade at the Strait of Hormuz continues, and any escalation could push oil prices higher again. Earlier, crude had surged to nearly $120 per barrel due to supply concerns.
Foreign investors, who had been selling heavily during the conflict period, have shown signs of returning.
Provisional data shows that foreign portfolio investors bought shares worth Rs 666 crore on Wednesday.
This shift in flows could provide short-term support to the market if it continues.
While the opening is expected to be strong, the key question is whether the market can hold on to gains.
Investors are balancing positive signals such as falling oil prices, hopes of easing tensions and FPI buying against ongoing risks like the shipping blockade and global uncertainty.
Market direction during the day may also be influenced by stock-specific action, especially as the earnings season picks up pace.
Corporate results will be closely watched on Thursday. IT major Wipro and HDFC Life Insurance Company are set to announce their January-March quarter earnings.
These results could impact sector-specific moves, particularly in IT and financial stocks.
For now, the trend remains positive after Wednesday’s sharp rally. Lower oil prices and improving global sentiment are supporting the market.
However, volatility cannot be ruled out. Any negative news around the Strait of Hormuz or a sudden rise in oil prices could quickly change market direction.
Investors are likely to stay cautious, even as the market opens on a firm note.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)