Indian benchmark indices are expected to open on a positive note on Friday, snapping a four-day losing streak. GIFT Nifty indicates a firm start near the 24,023 level, supported by an overnight rebound in U.S. markets. Investors are now monitoring U.S. nonfarm payroll data and rising crude oil prices.
Indian equity markets are set to begin the trading session on Friday with a potential recovery, snapping a four-day streak of losses. The GIFT Nifty, which tracks broader market sentiment before the exchanges open, suggests a firm start, trading in the 24,017 to 24,051 range. This points to a positive opening for benchmark indices, offering a brief respite after the Nifty 50 closed below the 23,900 level in the previous session.
The expected upward trend comes as investor sentiment improves following positive cues from international markets. Overnight, U.S. markets recorded strong gains after Federal Reserve Governor Christopher Waller hinted at a more measured approach to interest rates, provided inflation continues to moderate. This commentary helped lower U.S. Treasury yields, leading to a rebound in global equities and easing the pressure on riskier assets.
For domestic investors, the activity of institutional participants remains a significant trend to watch. In the previous trading session, domestic institutional investors emerged as net buyers, adding 4,977 crore to their holdings. This helped provide some support against foreign institutional investors, who remained net sellers, offloading equities worth 2,345 crore. Balancing these two opposing flows will be important as the market attempts to find direction.
While the opening may be positive, market participants will likely remain cautious due to several external factors. Crude oil prices, with Brent trading near the $97 per barrel mark, continue to pose a risk to domestic inflation and import bills. Additionally, the upcoming release of U.S. nonfarm payroll data is expected to keep volatility elevated, as traders look for clues on the future path of global economic growth and interest rates.
Investors may also monitor the technical setup of the market. Even with a positive opening, the indices face persistent overhead resistance that has led to profit-taking in recent sessions. The ability of the market to sustain today’s gains will depend on whether domestic buying momentum can offset the selling pressure often seen at higher levels.