As Indian equity markets prepare for Thursday’s session, a positive start seems likely, driven by firm signals from the Gift Nifty and encouraging global developments.
Gift Nifty is up 0.85%, hinting at a potential gap-up opening for the Nifty 50 and Sensex.
Investors will closely watch global market trends, including US-China trade talks and cues from Wall Street, as well as the reaction to the Federal Reserve’s steady interest rate stance.
The broader sentiment remains cautiously optimistic despite geopolitical tensions and rising market volatility.
Early signals from Gift Nifty indicate an upbeat start for Indian benchmarks on May 8.
The index, trading 0.85% higher, reflects strong buying sentiment and builds on the modest gains witnessed in the previous session.
On Tuesday, the Nifty 50 defended key support near 24,200 after initially opening lower, buoyed by steady buying and resilient domestic cues despite concerns over the recent Pahalgam terror attack and the launch of Operation Sindoor by Indian defence forces.
Market experts suggest the 24,200 level is expected to hold as a short-term support, while the 24,500–24,600 zone will likely act as a resistance ceiling.
The market may continue its range-bound movement unless a breakout occurs on either side.
Global markets offer mixed cues, but US sentiment firm
Overnight, global cues presented a mixed picture.
European markets ended in the red as investors exercised caution ahead of key macroeconomic developments.
In contrast, US futures rallied, with gains of more than 0.6% across major indices, indicating potential strength in risk appetite.
This may provide tailwinds for Asian and Indian equities at the open.
Importantly, investor sentiment received a lift from news that the US and China will resume high-level trade negotiations.
Scheduled to take place in Geneva from May 9 to 12, the talks between Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent are the first formal dialogue since the new round of tariffs was announced last month.
This development has sparked cautious optimism in the region.
Asian markets mixed ahead of US-China trade talks
Asian markets were largely positive on Wednesday, led by gains in Chinese and Hong Kong equities.
The Shanghai Composite Index rose 0.8%, while the CSI 300 climbed 0.6%.
The Hang Seng Index posted a modest 0.1% gain, although the Hang Seng Tech Index reversed early gains to close 0.8% lower.
Japanese markets were subdued after reopening from a two-day holiday.
The Nikkei 225 slipped 0.14% to 36,779.66, ending a seven-day winning streak, while the broader Topix Index rose 0.31%.
Export-heavy auto stocks like Toyota, Honda, and Mitsubishi Motors were under pressure due to a stronger yen.
Pharma stocks also faced headwinds after U.S. President Donald Trump threatened new tariffs on pharmaceutical imports, sparking fresh sectoral volatility.
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