Indian Markets Hold Breath: Gift Nifty Flat, Gaza Peace Sparks Profit Booking in Precious Metals

The Indian stock market enters Tuesday’s session amid a blend of global optimism and profit-sensitive corrections. Here’s what changed overnight and what investors should track as the week kicks into gear.

Notable Updates

Gift Nifty’s signal: Gift Nifty traded modestly up—only 6-10 points higher—reflecting expectations of a flat or mildly positive domestic open. The index hovers near 25,312, with strong technical support at the 25,200 mark.​

Muted start expected: Analysts highlight a base-shift higher but warn that substantial follow-through above 25,300 is needed to fuel a continued rally. India VIX climbed 9%, signifying a slight uptick in market nervousness.​

Wall Street rebounds: US indices closed higher, driven by chipmakers and hopes of easing US-China trade tensions, supporting risk appetite globally.​

Gaza ceasefire: A pivotal peace deal between Israel and Hamas lessened geopolitical tensions, spurring profit-booking in traditional safe havens like gold and silver.​

Gold retreats from highs: Gold corrected sharply after breaching the $4,000/oz barrier, as profit-taking and dollar firming took hold. In India, gold dropped 0.89% from its all-time high, trading near ₹1,22,111/10g.​

Silver cools off too: After rocketing past $50/oz, silver declined alongside gold, with Indian silver prices settling below recent record peaks.​

Oil price relief: Crude prices softened by more than 5%, mirroring calmer Mideast conditions and boosting sentiment on inflation-sensitive stocks.​

Asian markets mixed: While Korea’s Kospi registered gains and Hong Kong futures were steady, Japan’s markets were shut for a holiday, tempering regional momentum.​

Fed and policy watch: Hopes linger for another US rate cut, but uncertainty remains amid a US government shutdown and delayed inflation data, keeping global investors on their toes.​

Domestic focus: Tata Capital’s 1% listing gain drew attention on debut, while sectoral rotation is in focus for traders eyeing defensive and cyclical plays. FIIs and DIIs’ flows remain key market drivers.​​

Major Takeaways

Gift Nifty’s muted read points to a cautious open.

Gold and silver prices corrected due to ceasefire-led profit-taking.

Wall Street’s rally and easing geopolitical tensions support global sentiment.

Domestic market attention is on corporate moves and macro policy cues.​​

Sources: The Economic Times, Hindustan Times, Moneycontrol, Reuters, CNBC Awaaz, Investing.com.