Indian markets are expected to start with a flat-to-positive trend on Thursday, indicated by GIFT Nifty futures trading slightly higher at 24,423. This suggests a muted opening for Dalal Street, influenced by moderately supportive global cues. However, investor sentiment is tempered by increasing geopolitical tensions following India's military actions, Operation Sindoor, targeting terror camps in Pakistan and PoK.

Wednesday's market gains occurred despite a volatile session, as traders assessed the impact of India’s cross-border strikes in response to the Pahalgam terror attack. While no escalation has been reported, the situation remains sensitive. Analysts anticipate that markets will closely monitor updates from the Ministry of Defence and any reactions from across the border.

Technical analysis suggests a range-bound bias for the Nifty, with an immediate hurdle around 24,550. A sustained move above this level could trigger bullish momentum, while support levels are identified at 24,200 and 24,000. The India VIX, a measure of market volatility, increased by 0.5 percent to 19.06, reflecting heightened caution ahead of significant events.

US markets closed positively on Wednesday, with the Dow Jones rising by 0.7 percent, the S&P 500 by 0.43 percent, and the Nasdaq by 0.27 percent. The tech sector was boosted by news indicating potential easing of US regulations on AI chip exports. The Federal Reserve decided to keep interest rates unchanged, as widely anticipated.

Asian markets displayed a mixed performance at the opening. Japan’s Topix decreased by 0.5 percent and Australia’s ASX 200 edged down by 0.2 percent. Conversely, Euro Stoxx 50 futures showed a slight increase of 0.3 percent, pointing to mild optimism in European markets ahead of trade discussions between the US and China.

Gold prices rose as investors sought safe-haven assets amidst concerns about inflation and geopolitical uncertainties. Crude oil prices remained stable after a previous decline, influenced by demand concerns linked to trade uncertainty.

Stocks under the F&O ban include RBL Bank, CDSL, and Manappuram. Foreign Portfolio Investors (FPI) continued to invest, with net purchases of Rs 2,585 crore on Wednesday, while domestic institutions were net sellers, offloading Rs 2,378 crore.

The Indian rupee weakened by 42 paise to close at 84.77 against the US dollar on Wednesday, pressured by cross-border tensions and weak crude oil cues, despite positive FPI flows.