Indian Domestic Markets Open on Flat to Positive Note Amid Mixed Global Cues

Domestic markets are likely to open on a flat to positive note on Monday, driven by mixed global cues. Market participation is expected to remain subdued due to the festive holiday season, with the market scheduled to remain closed on Tuesday.

GIFT Nifty at 25,090 points indicates a gap-up opening of approximately 90 points for the Nifty. Broader market resilience, stable crude oil prices hovering around $90 per barrel for WTI crude, a firming rupee, and the resumption of foreign portfolio inflows continue to support domestic market sentiment.

Ponmudi R, Chief Executive Officer of Enrich Money, noted that the market faces a key test of momentum following a sharp weekly advance and a subdued Muhurat trading session. Investors are expected to weigh potential further gains against near-term profit-taking. According to Ponmudi, immediate attention will remain on underlying buying interest, global AI trade concerns, and Thursday’s Consumer Price Index (CPI) data, which will provide significant directional cues.

On the geopolitical front, ongoing developments involving the United States and Iran remain in focus. While President Donald Trump indicated that renewed military strikes are unlikely if negotiations progress, military action remains a possibility if talks fail. Despite these concerns, energy-market sentiment has stayed relatively stable.

Asian markets traded mixed, with Japan’s Nikkei 225 gaining over one percent, while South Korea’s KOSPI declined by more than 0.50 percent, reflecting broader global uncertainties.

Raamdeo Agrawal, Chairman and Co-Founder of Motilal Oswal Financial Services, stated that the market has potential for strong returns by next Diwali following two years of stagnation, supported by low valuations and high earnings growth. Factors such as potential crashes in oil prices, a stable currency, returning foreign investors, moderation of AI hype, and broad-based earnings growth are expected to support higher valuation multiples.

Avinash Agarwal, Senior Vice President and Head of Equity at Bandhan Life, emphasized that India’s structural growth story remains intact despite global uncertainties and evolving monetary policy expectations. He noted that earnings growth, rather than valuation expansion, will likely drive future market performance. Large- and midcap segments are expected to perform well when foreign institutional investors (FIIs) return, with leadership favoring companies displaying strong fundamentals, consistent cash-flow generation, healthy balance sheets, and sustainable earnings visibility across sectors like banking, financial services, healthcare, select industrials, infrastructure, and consumption-oriented businesses.

"The current market environment reflects a delicate balance between domestic structural strengths and global macroeconomic variables. While festive holiday seasonality and foreign portfolio flows dictate near-term momentum, long-term investor focus is clearly shifting toward fundamentals, earnings visibility, and cash-flow generation. As market leadership narrows down to resilient sectors like banking, infrastructure, and consumption, disciplined capital allocation based on realistic earnings growth will be vital for sustainable wealth creation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes