GIFT Nifty points to robust opening for Sensex and Nifty as Asian markets rise

GIFT Nifty was trading around 25,330 on Wednesday morning, barely changed from the previous close but up 286 points from Monday, indicating a solid start for the Sensex and Nifty. Investors are balancing a recovery in Asian technology shares against concerns that hotter-than-expected US inflation could prompt a Federal Reserve rate increase in December.

Foreign institutional investors bought Indian equities worth about Rs 7,212 crore, while domestic institutions sold roughly Rs 7,172 crore for the eighth straight session, suggesting renewed foreign interest may support the market despite a recent rebound in crude oil prices.

Across Asia, equity indices rose, led by a 0.8% gain in the MSCI Asia Pacific Index. Japan's Nikkei 225 and South Korea's KOSPI each advanced around 0.8% and 0.6% respectively, while Hong Kong's Hang Seng and Shanghai Composite slipped modestly. The rally was helped by better-than-expected earnings from US cloud-computing firm CoreWeave, which boosted investor sentiment toward AI-related stocks.

US stock futures recovered after Tuesday’s sell-off, with Nasdaq 100 futures up 0.6% and S&P 500 futures up 0.3%. The underlying US markets had fallen after the Consumer Price Index rose 0.4% in October, the third consecutive month of at least that increase, heightening expectations of a 25-basis-point Fed rate hike in December, according to CME FedWatch data cited by Reuters.

Crude oil prices rose, with Brent futures gaining 71 cents to $92.20 a barrel and WTI up 49 cents to $86.53, as investors weighed easing Middle-East tensions against ongoing attacks on shipping near the Strait of Hormuz.

"Indian equities appear well positioned to extend their recent advance, supported by moderating crude oil prices and a revival in foreign portfolio inflows," said Ponmudi R, CEO of Enrich Money, noting the shift from sustained foreign selling in October to consecutive sessions of net buying.