Gift Nifty Signals Cautious Open as Asian Tech Slumps on AI Spending Concerns

Indian equities are poised for a cautious start on Tuesday, July 28, 2026, as mixed global signals temper domestic enthusiasm. Gift Nifty Futures were trading approximately 53 points, or 0.22%, lower at 23,957, hinting at a muted opening following a recovery session. Wall Street closed with mixed results overnight, led by a 0.5% gain in the Dow Jones Industrial Average to 52,210.08, while the Nasdaq Composite slipped approximately 0.2% to 24,932.08 due to semiconductor weakness.

Asian markets experienced a broad decline, primarily led by chipmakers amid renewed concerns over artificial intelligence spending. The MSCI Asia Pacific Index fell approximately 1.2%, with technology shares bearing the brunt of the sell-off. South Korea's Kospi Index dropped significantly by approximately 5.6%, and Japan's Nikkei slid approximately 1.3%. This regional tech downturn threatens to offset positive domestic momentum built during the previous session.

Crude oil prices continued their decline, falling approximately 1% as investors weighed a pause in US strikes on Iran, bringing Brent crude down to approximately $87.82 a barrel. Lower crude costs offer relief to domestic oil-marketing companies while overall market direction remains tied to quarterly corporate earnings and institutional fund flows. Trading activity is expected to be closely dictated by Q1 FY27 results from bellwethers like Larsen & Toubro and Hindustan Unilever.