GIFT Nifty falls 100 pts, signals weak start for Sensex, Nifty despite Asian, Wall Street rallies; Fed in focus

GIFT Nifty was trading at 22,669 around 7:45 am, down 104.5 points, or 0.46 percent. Indian equities snapped a four-session losing streak on Monday, with the Sensex gaining 482.92 points, or 0.66 percent, to 73,606.75 and the Nifty advancing 153.20 points, or 0.68 percent, to 22,753.20. Foreign institutional investors sold equities worth Rs 1,462 crore, while domestic institutions bought shares worth Rs 2,609 crore, extending their buying streak to ten consecutive sessions.

Asian equities rallied on Tuesday as Anthropic's much-anticipated IPO filing revived investor appetite for artificial intelligence-related stocks ahead of major technology earnings and central bank policy decisions. South Korea's Kospi jumped more than 4 percent in early trading, while Japan's Nikkei gained 1.9 percent. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2 percent. US equity futures also traded higher, with Nasdaq futures gaining 0.4 percent after US semiconductor stocks rallied 2.8 percent overnight, recording their biggest one-day advance in a month.

US equities closed higher on Monday, with the S&P 500 and Nasdaq recovering after consecutive weekly declines as Anthropic's IPO filing supported renewed buying in AI-related stocks. The Dow Jones Industrial Average rose 146.42 points, or 0.28 percent, to 52,361.58, while the S&P 500 gained 53.09 points, or 0.70 percent, to 7,676.77. The Nasdaq Composite advanced 214.04 points, or 0.83 percent, to 26,169.38.

Investors are now looking ahead to a busy week of market-moving events, including the Federal Reserve's policy statement on Wednesday, US economic growth and inflation data on Thursday, and a series of major corporate earnings announcements. Crude oil prices edged lower on Tuesday as hopes of a possible resolution to the US-Israeli war on Iran eased immediate supply concerns, although continued attacks on Saudi Arabia kept geopolitical risks elevated.

Brent crude futures fell 66 cents, or 0.57 percent, to $115.15 a barrel, while West Texas Intermediate declined 44 cents, or 0.43 percent, to $101.32 a barrel. Yet, Brent remained close to six-month highs, reflecting continued concerns. Ponmudi R, CEO of Enrich Money, said the near-term direction of domestic equities is likely to remain sensitive to geopolitical developments, crude oil price movements and signals from the US Federal Reserve.

He expects volatility to persist as investors balance external risks against the possibility of a sustained recovery in market sentiment. The Federal Reserve's policy announcement on Wednesday will be a major event for global markets, with investors looking for indications of the future interest-rate trajectory.