Indian stock markets are expected to open higher today following positive global cues and a rebound in semiconductor stocks. Investors will monitor whether domestic buying momentum remains strong despite recent selling by foreign investors.
Indian stock markets are set for a positive start this Friday, July 10, following a rally in global equities and renewed optimism surrounding artificial intelligence and semiconductor demand. GIFT Nifty futures, which provide a pre-market indication of the Nifty 50, were trading near 24,099.50 in early Asian hours, suggesting a potential continuation of the recovery seen in the previous session.
On July 9, domestic indices successfully erased losses from earlier in the week, supported by broad-based buying. While the overall market sentiment was positive, the Information Technology and Auto sectors faced selling pressure, lagging behind the rest of the market. Investors will likely watch whether these sectors can reverse their trend as the trading day progresses.
Global Market Drivers
The positive sentiment is largely influenced by overnight performance in US markets. The Nasdaq Composite saw a significant rise, driven primarily by enthusiasm for chip-related shares. Micron Technology was a notable contributor to this trend, helping to boost investor confidence in semiconductor companies. Meanwhile, the S&P 500 rose 0.81% and the Dow Jones Industrial Average added 0.27%, indicating a stable environment for global risk assets.
Investors are also observing commodity and currency trends. Crude oil prices showed a slight decline as concerns over supply disruptions due to Middle East tensions moderated. The US Dollar Index remained steady near 101, with US Treasury yields showing little movement, which generally helps maintain a stable outlook for emerging market equities like India.
Institutional Activity Trends
Recent institutional data highlights a divergence in sentiment between different types of market participants. Foreign Portfolio Investors (FPIs) became net sellers on July 9, offloading shares worth ₹532 crore and ending a four-day streak of net buying. In contrast, Domestic Institutional Investors (DIIs) maintained their support for the market, net buying over ₹2,000 crore worth of equities in the same session. This continued activity from domestic institutions has been a key factor in stabilizing the market during periods of foreign selling.
The most important monitorable for today will be whether the domestic buying appetite can offset potential volatility from FPI activity. Additionally, market participants will track the performance of individual IT and Auto stocks to see if the recent lag is temporary or indicative of deeper sector-specific challenges, such as margin pressure or demand concerns in these segments. The final market direction will depend on how institutional investors balance these regional and global factors throughout the session.