GIFT Nifty Analysis: A New Week Overview

The GIFT Nifty opened the new trading week on a weaker note, signaling a cautious mood across global markets.

The index slipped nearly 0.3%, reflecting investor concern over renewed U.S., China trade tensions and the ripple effects across Asia. As of Monday morning, Nifty futures hovered around 25,325, indicating a mildly negative opening for Indian equities.

The broader market sentiment was influenced by global cues after President Donald Trump’s announcement of a 100% tariff on Chinese imports. 

However, later remarks suggesting a softer tone eased panic, leading to partial recovery in Asian markets. Despite that, volatility remains high as investors reassess positions in equities, commodities, and currencies ahead of India’s corporate earnings season.

Key Takeaways

• GIFT Nifty fell around 0.3%, indicating a subdued start for Indian equities.
• Sensex and Nifty opened lower due to weak global cues and selling in metal and power stocks.
• Tata Capital IPO made a modest debut with a 1.2% premium, below market expectations.
• Waaree Renewable Technologies and Avenue Supermarts (DMart) posted strong quarterly results.
• Analysts expect short-term volatility but maintain a positive medium-term outlook for Nifty above 25,000.

Global Market Influence

The week began under the shadow of escalating U.S., China trade friction. Global equity markets suffered heavy losses on Friday after Trump imposed new tariffs, prompting fears of a prolonged trade conflict. The Nasdaq fell 3.5%, its steepest drop since April, while the S&P 500 slid 2.7%, erasing nearly $2 trillion in market value.

Asian markets mirrored the nervous sentiment. Hong Kong’s Hang Seng and Taiwan Weighted Index dropped over 2%, while China’s markets remained volatile amid official statements asserting readiness for a trade standoff. Japan’s market closure for a public holiday added to thin liquidity and amplified price swings.

Despite the initial panic, global futures recovered slightly after Trump’s conciliatory remarks to “not worry about China,” hinting that the trade spat may ease in the coming sessions.

Read Also: NIFTY Surges or Sinks? Shocking Moves in India's Stock Market

Domestic Market Opening

In India, the Sensex opened nearly 300 points lower, while the Nifty slipped below 25,200, with both indices down around 0.35%. Early trading saw weakness across key sectors, especially metal, realty, and power, each declining by over 1%. The BSE Midcap and Smallcap indices also fell by 0.5%, indicating broad-based pressure.

Among major laggards were Tata Motors, ONGC, and Tata Steel, while gainers included Apollo Hospitals, Asian Paints, ICICI Bank, and Bajaj Finance. The selling in commodities and energy mirrored concerns about declining global demand amid tariff uncertainty.

Corporate Highlights Shaping Market Sentiment

Tata Capital Listing

Tata Capital, India’s largest IPO of 2025, made its market debut at Rs 330 per share, about 1.2% above its issue price. The listing was subdued despite strong brand backing from the Tata Group and fair valuations. Analysts suggest that long-term investors can hold the stock, while short-term traders may book profits near current levels.

Waaree Renewable Technologies

The company reported a 117% YoY increase in profit and a 47% surge in revenue, reinforcing the bullish narrative around India’s renewable energy sector.

Avenue Supermarts (DMart)

DMart’s Q2 results showed a 3.8% profit rise and a 15.5% jump in revenue, but margins dipped slightly due to higher operating costs. Analysts maintain a cautious stance, citing competition pressure and moderate growth.

Mahindra Lifespace Developers

Mahindra Lifespace announced a redevelopment project worth Rs 800 crore in Mumbai and a new land acquisition in Pune estimated at Rs 3,500 crore potential. The announcements reflect renewed confidence in the real estate sector despite rising input costs.

NTPC Green Energy and ENEOS MoU

NTPC Green Energy signed an agreement with Japan’s ENEOS Corporation for the supply of green hydrogen and methanol, signaling India’s continued push into sustainable energy partnerships.

Sectoral Overview

Metal and Power Stocks

Metal and energy stocks were the biggest drags, down nearly 1% each, affected by global supply chain fears and falling commodity prices. Tata Steel and ONGC led the decline after heavy foreign selling.

Realty and FMCG

Real estate counters, which had gained in the previous week, corrected sharply amid profit booking. The BSE Realty Index dropped over 1%, led by DLF, Godrej Properties, and Oberoi Realty. FMCG stocks also slipped amid weakening rural demand and high input costs.

Banks and Financials

Banking majors such as ICICI Bank and SBI managed to stay resilient. Analysts believe the banking sector could outperform in the medium term, given strong loan growth and stable credit quality.

Technology and IT

Tech stocks like Infosys, TCS, and HCL Technologies traded mixed as global volatility hit the Nasdaq. However, domestic IT majors are expected to see stable demand supported by dollar strength and robust order books.

Technical Outlook for Nifty

According to market experts, the short-term trend remains cautiously positive. Support is seen around 25,000–24,900, while resistance is expected near 25,450–25,670. Sustained movement above 25,450 could signal a renewed rally, whereas a fall below 25,000 might trigger fresh selling.

Analysts from Mehta Equities noted that domestic consumption themes such as retail, auto, and housing may see institutional accumulation even amid global volatility. Meanwhile, HDFC Securities’ technical team suggested maintaining long positions with a stop loss at 25,150.

Commodity and Currency Watch

Gold surged above USD 4,000 per ounce, extending its safe-haven appeal amid geopolitical and economic uncertainty. Silver also held firm around USD 49, while Brent crude rebounded 1% to trade near USD 63.60 per barrel.

In currency markets, the Indian Rupee opened lower at 88.76 per dollar, tracking the dollar’s global strength. However, forex experts expect stability if foreign inflows continue into Indian equities and bonds.

Investor Sentiment and Strategy

Investor sentiment in India remains mixed. While foreign institutional investors (FIIs) bought equities worth Rs 3,289 crore over the last week, concerns persist about global capital flows and trade policy shifts.

Market strategists advise caution in the near term. Traders should avoid aggressive positions and focus on high-quality blue chips like ICICI Bank, Maruti Suzuki, and HDFC Life. Long-term investors can continue accumulating shares in consumption and energy transition themes.

Final Thoughts

The new trading week began with volatility driven by global macro factors, but India’s underlying market fundamentals remain strong. Despite the weakness in early trade, the Nifty 50 continues to hold above key support levels, reflecting resilience among domestic investors.

If global tensions ease, Indian markets may quickly regain upward momentum. Investors should keep a close watch on earnings reports, FII activity, and geopolitical developments in the coming days.

Read Also: Nifty 50 Price Forecast (2025–2029)

FAQ

What is GIFT Nifty indicating for this week?

GIFT Nifty futures are signaling a cautious start with a 0.3% decline, suggesting mild weakness in Indian equities amid global trade worries.

Why did the market open lower today?

Weak global cues following renewed U.S.–China trade tensions and selling pressure in commodity-linked stocks led to the early decline.

Which sectors are underperforming in the current session?

Metal, power, and real estate sectors are leading the losses, while select banking and pharma stocks are showing resilience.

What is the short-term outlook for Nifty 50?

The index is expected to stay range-bound between 25,000 and 25,450. A breakout above 25,450 may trigger a fresh rally.

Should investors buy the Tata Capital stock after listing?

Analysts suggest holding the stock for the long term due to the company’s strong fundamentals but advise caution on fresh short-term entries.