Opening Bell: Will Sensex, Nifty consolidate after record rally? Here’s what GIFT Nifty trends suggest

After a record rally in the previous session, Indian share market is poised for a negative start on Tuesday, undermining firm cues from global equities. The BSE Sensex and NSE Nifty are seen opening lower as GIFT Nifty futures were down 157 points, or 0.63%, 24,917, indicating a gap-down start for the domestic benchmark indices.

On Monday, Indian benchmark indices registered their biggest-ever single-day gains in absolute terms, driven by positive developments such as ceasefire between India and Pakistan, sustained foreign fund inflows, and U.S.-China trade deal. The BSE benchmark Sensex gained 2,975 points, or 3.74%, to settle at 82,430, and the NSE Nifty rallied 917 points, or 3.82%, to end at 24,924. In terms of percentage, the Sensex and the Nifty50 logged their record-breaking single-day rally last since February 2021.  

Among individual stocks, shares of Tata Motors, Hero MotoCorp, Bharti Airtel, Siemens, Bharti Hexacom, Aditya Birla Capital, Cipla, GAIL India, GlaxoSmithKline Pharmaceuticals, Garden Reach Shipbuilders & Engineers, Max Financial Services, Suven Life Sciences, VIP Industries, and VST Tillers Tractors will be in focus as they are set to release their Q4 results today.

Besides, investors will also react to earnings reports of Tata Steel, Ather Energy, Raymond, Thomas Cook, Zaggle Prepaid Ocean Services, Novelis (Hindalco subsidiary), and Morepen Laboratories.

Wall Street rallies on U.S.-China trade deal

In the overnight trade, all three major U.S. indices closed with solid gains as Wall Street cheered the U.S.-China trade deal. The easing concerns about trade war and its impact on global economies further lifted sentiments. The Dow Jones Industrial Average ended 2.8% higher, the S&P 500 rallied 3.3%, and the tech-heavy Nasdaq Composite surged 4.4%.  

Investors will keep a close eye on U.S. inflation data due later tonight (Indian time), amid growing concerns about sticky inflation due to President Donald Trump’s tariffs, which pushed up input costs for businesses. 

Asian shares follow Wall Street higher

Tracking firm cues from Wall Street, Asian shares also traded higher on Tuesday as U.S.-China trade deal boosted sentiments. However, weakness in U.S. stock index futures limited the climb as caution prevailed ahead of the U.S. inflation data later today, which is key for Federal Policy decision.

Japan’s Nikkei 225 rallied 1.7%, Taiwan Weighted index jumped over 1.2%, and Singapore’s Straits Times added 0.6%. Among others, South Korea’s Kospi and China’s Shanghai Composite traded marginally higher. Australia’a ASX 200 settled 0.54% higher.