US stock market to Nikkei: Here’s global equity heatmap you should know before opening of the Indian stock market today

The Indian stock market is expected to see a weak opening on Tuesday, following mixed cues from global markets as investors remain cautious amid escalating geopolitical tensions in the Middle East, elevated crude oil prices, persistent foreign portfolio investor (FPI) selling. The trends on Gift Nifty also indicate a weak start for the Indian benchmark index.

The Gift Nifty was trading around 24,147 level, a discount of nearly 112 points from the Nifty futures’ previous close.

“The weak indication reflects lingering concerns over the evolving geopolitical situation and its potential impact on global energy markets and capital flows. With Brent crude continuing to trade at elevated levels and the rupee remaining under pressure, investors are likely to remain focused on global developments, while the ongoing first-quarter earnings season is expected to drive stock-specific action,” said Ponmudi R, CEO of Enrich Money.

According to him, until there is greater clarity on the geopolitical front, broader market sentiment is likely to remain subdued despite selective opportunities emerging from corporate earnings.

Global markets traded on a mixed note. While Wall Street ended modestly lower overnight, Asian equities have rebounded sharply this morning, reflecting selective bargain hunting and an improvement in regional risk appetite.

Here’s a look at the global equity heatmap before opening of the Indian stock market today.

Asian markets traded mostly higher. Japan’s Nikkei 225 rallied 1.82%, while the Topix gained 1.88%. South Korea’s Kospi jumped 2.85% while the Kosdaq declined 2.11%. Hong Kong’s Hang Seng index gained 2.3%, while China’s A50 index advanced around 2.6%.

“The broad-based recovery suggests that investors continue to buy quality assets on dips despite geopolitical uncertainty. The resilience across Asia indicates that markets currently expect geopolitical tensions to remain contained unless they significantly disrupt global crude oil supplies or shipping routes,” said Ponmudi R.

US stock market ended lower on Monday as investors monitored developments surrounding the US-Iran war and its potential impact on global energy supplies.

The Dow Jones Industrial Average declined 307.16 points, or 0.59%, to 51,839.26, while the S&P 500 fell 14.41 points, or 0.19%, to 7,443.28. The Nasdaq Composite closed 12.17 points, or 0.05%, lower at 25,508.07.

“Despite geopolitical uncertainty, the decline across US markets remained relatively contained, indicating that investors are adopting a cautious approach rather than moving into panic selling,” said the Enrich Money analyst.

European markets ended on a mixed note as investors balanced geopolitical risks against corporate fundamentals. London’s FTSE 100 declined 0.7%, while Germany’s DAX and France’s CAC 40 closed nearly flat.

“The best-performing sector continued to be Oil & Gas, supported by elevated crude prices, whereas travel, airlines and leisure stocks witnessed selling pressure due to concerns over rising fuel costs and weaker consumer demand,” said Ponmudi R.

Nifty 50 is expected to trade with a cautiously constructive bias, as buying interest near key support levels continues to underpin the broader recovery trend, although intermittent profit-taking may limit the pace of gains.

“Technically, 24,000 remains the immediate support for the Nifty 50. A decisive break below this level could open the door for a decline towards 23,800. On the upside, the index needs to reclaim and sustain above 24,200 to regain positive momentum, which could pave the way for a move towards 24,350 – 24,400,” said Ponmudi R.