Indian benchmark indices Sensex and Nifty are poised for a positive start on Thursday, tracking firm signals from GIFT Nifty. Asian markets rallied and crude oil prices eased further after upbeat earnings guidance from Micron Technology revived optimism around artificial intelligence spending. GIFT Nifty was trading at 24,106 around 7:55 am, up 83 points or 0.35 percent, indicating a firm opening for domestic equities after benchmarks rebounded more than 1 percent in the previous session.
The positive indication follows a strong recovery on June 24, when easing concerns over disruptions to global oil supplies and broad-based buying in information technology, banking and realty stocks helped the Sensex climb 790.54 points, or 1.04 percent, to 76,991.22. The Nifty rose 197.55 points, or 0.83 percent, to close above the 24,000 mark at 24,021.65.
Global cues supportive ahead of opening bell
Wall Street ended mixed overnight. The Dow Jones Industrial Average rose 0.35 percent, while the S&P 500 slipped 0.10 percent and the Nasdaq Composite lost 0.43 percent as investors remained cautious about elevated technology valuations and the outlook for US interest rates.
However, sentiment improved significantly after the closing bell. Micron Technology forecast quarterly revenue well above Wall Street estimates, signalling that demand for AI-related memory chips remains robust. Qualcomm also projected strong long-term growth in its data centre business, reviving confidence in AI infrastructure spending.
The upbeat outlook triggered a broad rally in semiconductor stocks in after-hours trading. Micron surged about 12 percent, while Western Digital, Sandisk and Seagate gained more than 8 percent each. Arm Holdings, Broadcom, Marvell, Applied Materials and ASML also advanced strongly, lifting Nasdaq futures sharply higher.
The positive momentum spilled over into Asia on Thursday. Nasdaq 100 futures rose about 1.7 percent, while S&P 500 futures gained 0.5 percent. South Korea's Kospi jumped around 6 percent, Japan's Topix rose 1.3 percent and the broader MSCI Asia Pacific Index climbed 1.4 percent. Hong Kong and mainland Chinese markets, however, traded lower.
Crude oil prices continued to slide, adding another supportive factor for equity markets. Brent crude fell to around $73 per barrel, while US West Texas Intermediate traded near $70 per barrel after traffic through the Strait of Hormuz continued to normalise following progress in the US-Iran peace process. Oil has now erased virtually all of the gains recorded during the recent Middle East conflict, easing concerns over inflation and India's import bill.
According to Ponmudi R, CEO of Enrich Money, improving global risk appetite and lower oil prices are likely to support Indian equities. "Better-than-expected earnings and optimistic guidance from Micron Technology have reinforced confidence in the outlook for artificial intelligence and semiconductor-related spending, helping ease concerns that had recently weighed on global technology stocks," he said.
Institutional flows remained mixed in the previous session. Foreign institutional investors (FIIs) sold equities worth Rs 1,843 crore on June 24, while domestic institutional investors (DIIs) extended their buying streak with purchases worth Rs 3,637 crore, continuing to provide support to the market.
From a technical perspective, Ponmudi said the Nifty remains constructive, with immediate resistance at 24,100-24,200. A sustained breakout above this zone could lift the index towards 24,400-24,600. On the downside, 24,000 remains the key support, followed by the 23,900-23,800 zone, with a break below 23,800 likely to trigger profit booking.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
