Indian stock markets are expected to open flat on Wednesday despite positive global cues, with GIFT Nifty at 22,740 and Nifty futures at 22,800 indicating a flat-to-negative start, according to thehindubusinessline.com. US stocks reached a peak overnight, and Asian stocks, including the Nikkei 225 and KOSPI, posted marginal gains, providing a supportive external backdrop for domestic equities.
Ponmudi R, CEO of Enrich Money, said Indian equities are likely to extend their recovery, supported by improving global sentiment and a positive close across US markets. However, he noted that the recovery remains sensitive to shifts in the global macroeconomic and geopolitical environment. Despite steady Asian markets, concerns persist due to geopolitical risks and crude oil prices, which have rebounded modestly from recent lows.
Geopolitical tensions and rising crude prices, with WTI crude near $90 a barrel and Brent above $100, could push oil prices higher and weigh on risk appetite. This adds to concerns over India’s inflation and external balances. Additionally, rising global bond yields contribute to market caution, potentially limiting the upside for Indian equities despite the positive global cues.
The market’s direction will depend on developments in geopolitical tensions and crude oil prices, with investors closely monitoring these factors amid a cautious global macroeconomic environment, thehindubusinessline.com reported.