Indian Markets Eye Flat Opening After Holiday Break

Indian markets staged a remarkable recovery on Wednesday, breaking an eight-day losing streak with significant gains across major indices. The Sensex surged by 715.69 points, representing a 0.89% increase to close at 80,983.31, while the Nifty 50 moved up by 225.20 points, a 0.92% gain, settling at 24,836.30. This bullish momentum was primarily driven by the Reserve Bank of India’s decision to keep the repo rate unchanged and maintain its policy stance, providing much-needed stability to market sentiment.

The RBI’s announcement of several measures for the banking sector provided additional support to the market rally. These policy decisions came at a crucial time when Indian markets were experiencing sustained selling pressure, making the Wednesday recovery particularly significant for investor confidence. The strong performance marked a decisive turnaround from the previous eight sessions of declines, setting a positive tone as markets prepared for the extended holiday break.

While domestic factors provided support, global market movements presented a mixed picture for Indian equities. Asian markets showed advancement, creating some positive sentiment in the region. However, the Gift Nifty was trading near 24,942, approximately 25 points lower than the previous Nifty futures close, suggesting potential weakness at the opening bell for Indian markets on Friday.

Across the Atlantic, US stock indices closed at fresh record highs on Thursday, with all three major Wall Street indices achieving new milestones. The Dow Jones Industrial Average surged by 78.62 points (0.17%) to close at 46,519.72, while the S&P 500 gained 4.15 points (0.06%) to end at 6,715.35. The Nasdaq Composite led the charge, trading higher by 88.89 points (0.39%) to finish at 22,844.05. This remarkable performance was driven primarily by technology shares, demonstrating resilience despite the US government shutdown entering its second day.

Crude oil prices showed divergent movements in international markets, adding another layer of complexity to the global economic landscape. Brent crude gained 0.45% to reach $64.40 per barrel, while US West Texas Intermediate (WTI) crude was trading 0.46% lower at $60.76 per barrel. These mixed commodity price movements reflect the ongoing uncertainty in global energy markets and could influence sector-specific performance in Indian markets.

The combination of domestic policy support, mixed global cues, and commodity price fluctuations creates a complex environment for investors as Indian markets resume trading. The flat opening expectation reflects the balancing act between positive domestic developments and cautious global sentiment. Market participants will be closely monitoring whether the momentum from Wednesday’s RBI-driven rally can sustain itself against the backdrop of global uncertainties and the slightly weak signal from Gift Nifty futures.