How Global Markets Affect India

What this unit covers

Learn how overnight moves in global equity markets carry into the Indian market's opening, for example a GIFT Nifty move ahead of the Indian open.

By the end you will be able to

• Explain why Indian index futures absorb overnight moves before India opens.
• Identify the opening gap as an echo of overnight moves elsewhere, not a random event.
• Distinguish an overnight cue explaining the opening tilt from a forecast of the day.

How it starts: The Red Number Before India Wakes

1. You check your phone and see the Nifty set to open sharply down.
2. You find no Indian news at all to explain the drop.
3. Why would the market fall before India has even opened?

Words you will meet

GIFT Nifty

A futures contract traded at GIFT City that tracks where the Nifty is likely to open.

Index futures

A contract whose price tracks a market index and that trades for set hours set by its exchange.

Overnight cue

A signal from another market's move that happened while the Indian market was closed.

Opening tilt

The direction a market first moves in once trading for the day begins.

In this module: Global Markets

1. US Markets
2. European Markets
3. Asian Markets
4. How Global Markets Affect India (this unit)