Indian equity markets are poised for a weak start on Monday, as GIFT Nifty, a key indicator of market sentiment, traded lower on Sunday. GIFT Nifty, which reflects the performance of Nifty 50 futures on the Gujarat International Finance Tec-City (GIFT City) exchange, fell by 0.3% in early trading, signaling a negative opening for domestic indices.
The decline comes after a strong week for Indian stocks, with the Nifty 50 index closing at 24,334 on Friday, up 1.1% from the previous week. The rally was driven by robust June-quarter earnings from heavyweight companies in the IT and financial sectors, which boosted investor confidence.
However, global cues remain mixed, with concerns over rising interest rates in the US and geopolitical tensions weighing on sentiment. Analysts suggest that the market may see profit-booking at higher levels, especially after the recent gains. The GIFT Nifty's decline reflects cautiousness among investors ahead of key economic data releases later this week.
Market participants will closely watch the Reserve Bank of India's monetary policy stance and global developments for further direction. The Indian rupee also weakened slightly against the US dollar on Friday, adding to the cautious mood.
