Domestic markets are expected to open sharply lower amid global sell-off. GIFT Nifty at 23,065 signals a gap down opening of about 200 points for Nifty, as equities across the Asia Pacific region are down in early deals following overnight weakness in the US stocks.
The risk-off mood intensified after US President Donald Trump signalled a more aggressive stance towards Iran, triggering fresh concerns over a broader conflict in West Asia, said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
Wall Street witnessed a sharp correction overnight, with the Dow Jones falling nearly 950 points. The weakness was broad-based as investors moved away from risk assets amid fears that escalating geopolitical tensions could disrupt energy markets and keep inflationary pressures elevated, he added.
On the domestic front, investors will closely monitor large private banks, which have been providing stability to benchmark indices through institutional buying and defensive allocation. The IT sector could also remain in focus as Wipro’s buyback process unfolds, although broader sector sentiment remains dependent on global technology trends and US interest rate expectations, he further said.
Crude oil prices have edged higher in response to the escalation and are currently trading in the $92–93 per barrel range. “Foreign Institutional Investors (FIIs) continue to remain net sellers, with persistent outflows acting as a significant headwind for the Indian market. While DII buying may provide some support and help cushion downside volatility, the prevailing global risk-off environment is likely to keep upside momentum limited in the near term. Investors will closely monitor developments in the US–Ira