GIFT Nifty Drops 1.5% Amid US Market Crash: What Lies Ahead for Indian Stocks?
GIFT Nifty tumbles 1.5% as US stock market plunges. Will Dalal Street crash on Monday?
Image: The Economic Times
The GIFT Nifty fell by 1.52%, signaling a bearish start for Dalal Street on Monday, following a significant drop in US markets due to strong jobs data raising inflation fears. Analysts anticipate a range-bound performance for Indian equities amid mixed domestic and global cues.
- 01GIFT Nifty declined by 356 points to close at 23,091, reflecting a negative sentiment for Dalal Street.
- 02The US stock market experienced a steep decline, with the Nasdaq dropping over 4%, marking its largest single-day fall since April 2025.
- 03The Reserve Bank of India raised its FY27 inflation forecast to 5.1% while lowering GDP growth expectations to 6.6%.
- 04The RBI has implemented measures to attract foreign capital, including easing investment norms for NRIs and OCIs.
- 05Technical analysis suggests Nifty 50 may consolidate between 23,300 and 23,500, with potential for a breakout or sharp correction.
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The Indian stock market is poised for a bearish opening on Monday as the GIFT Nifty dropped 1.52%, or 356 points, to 23,091, following a significant decline in US markets. The Nasdaq experienced its largest single-day fall since April 2025, plunging over 4% after strong US jobs data heightened concerns about rising inflation and interest rates. The Dow Jones Industrial Average and S&P 500 also saw notable declines. Analysts predict that Indian equity markets will remain range-bound next week due to mixed domestic and global factors. The Reserve Bank of India has raised its inflation forecast to 5.1% and lowered GDP growth expectations to 6.6%, which may influence investor sentiment. The RBI is also taking steps to attract foreign investment, including tax exemptions for foreign portfolio investors in government securities. Technical analysts suggest that Nifty 50 is likely to consolidate within a range of 23,300 to 23,500, with a breakout above or below these levels indicating future market direction.
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The decline in the GIFT Nifty and US markets may lead to cautious trading on Dalal Street, affecting investor sentiment and stock valuations.
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