Gift Nifty signals flat opening for Sensex, Nifty, despite strong Asian markets

Gift Nifty at 24,150 indicates a flat to weak opening for Indian stocks, despite positive cues from global stocks.

Ponmudi R, CEO of Enrich Money, said, Indian equity markets are expected to open on a subdued note as investors remain cautious amid escalating geopolitical tensions in West Asia, elevated crude oil prices, persistent foreign portfolio investor (FPI) selling, and continued weakness in the Indian rupee. The combination of external headwinds has reinforced a risk-off mood, limiting investors’ appetite for equities.

“The weak indication reflects lingering concerns over the evolving geopolitical situation and its potential impact on global energy markets and capital flows,” he said.

Eyes on fundamentally strong companies

According to Ankur Punj, MD & Business Head at Equirus Wealth,  The escalating US-Iran conflict is causing notable investor nervousness, and hence sideways movement may persist in the near term. “Investors are looking at companies with strong fundamentals and robust earnings. Additionally, continued crude oil volatility is expected to drive further interest toward safe-haven assets,” he advised.

Meanwhile, PGIM India Mutual Fund in its monthly outlook said FPI inflows into equities also rebounded with over US$ 1.20 billion during the month so far, first positive flows into equity after Feb 2026.

PGIM Mutual expects rate hike

“Monsoons took a breather after some good rains in the week prior with cumulative rainfall 24% below long term average till July 17. Rainfall is deficient in North East, South, Central and West India. Out of the 36 sub-divisions, till date, 23 have received deficient rainfall, 12 have received normal rainfall and one has received excess rainfall. Out of the 36 sub-divisions, till date, 23 have received deficient rainfall, 12 have received normal rainfall and one has received excess rainfall. Basin-wise reservoir levels is in deficit. Among major river basins, Ganga (North and East), Mahanadi (Central and East), Tapi (Central and West) were surplus while Indus (North India), Narmada (Central and West), Godavari and Krishna (West and South), Cauvery (South), and West flowing southern rivers were in deficit.”

 Puneet Pal, Head-Fixed Income, PGIM India Mutual Fund, “We continue to expect rate hikes by the MPC in the second half of FY27 in order to keep real rate positive even though average CPI inflation in FY27 is now expected to be below 5.00%. Though bond yields have fallen sharply we do not expect the 10yr bond yield to sustain below 6.60% given that central banks across the world have been hiking rates and monsoons continues to be deficit. “

Meanwhile, beaten down Korea’s Kospi jumped over 3 per cent while Japan’s Nikkei gained nearly 2 per cent in early trade on Tuesday despite overnight weakness in the US stocks.

Published on July 21, 2026