Indian indices expected to open lower as GIFT Nifty signals muted start, while global markets show mixed moves

The GIFT Nifty was trading around 25,213, up about 0.05% from the previous close, suggesting a subdued start for India’s Sensex and Nifty 50 on Thursday. Analysts said investors will watch the October CPI inflation data closely, as a higher reading could raise concerns about further monetary tightening, while a softer print might ease market sentiment.

On Wednesday, the Sensex rose 772.75 points to close at 81,879.40, its highest level since February, and the Nifty 50 ended at 25,255.05, also near a nine-month high. The gains were attributed to foreign inflows, better-than-expected September-quarter earnings and falling crude oil prices.

"Markets edged higher on Wednesday, extending the prevailing positive trend and ending the session with decent gains," said Ajit Mishra, senior vice-president of research at Religare Broking.

Technical analysts noted that the Sensex opened with a sharp gap-up but formed a doji candle, indicating indecision, and highlighted the 81,300-81,500 support zone as critical. "Overall, the recovery remains encouraging, but the index needs to sustain above 82,000 and clear 82,500 to extend its upward momentum," said Sachin Gupta, vice-president of technical research at Choice Equity Broking.

For the Nifty, Vatsal Bhuva of LKP Securities observed profit-taking after the prior rally and warned that the index was in an overbought zone, suggesting a possible mild retracement toward 25,000-24,800, with 25,500 as immediate resistance. He added that a dip could present buying opportunities rather than a trend reversal.

In the United States, Wall Street indices continued their recovery on Wednesday, with the Dow Jones Industrial Average closing about 250 points higher, the S&P 500 gaining up to 1.3%, and the Nasdaq rising roughly 1.6% after AI-related earnings support.

Asian markets opened mixed: South Korea’s KOSPI rose 0.2% on Thursday, Japan’s Nikkei 225 edged higher while the broader Topix gained 0.62%, and Taiwan’s Taiex fell about 0.75%.

Analysts caution that market direction remains subject to global cues and domestic inflation data, and investors are advised to consider professional advice before making decisions.