Indian stock markets opened higher on Friday, snapping a two-day losing streak as technology shares rose following strong earnings from Nvidia. While the tech-led rally provides a cushion, investor sentiment remains cautious ahead of Federal Reserve Chair Kevin Warsh's upcoming speech at the Jackson Hole symposium. Participants are closely watching the event for clues on future US interest rates amid persistent inflation and geopolitical tensions.
Indian equity markets opened in positive territory on Friday, marking a recovery after declines in the previous two sessions. The primary driver for this early momentum was the technology sector, which saw broad-based buying. The rally in Indian IT shares follows a strong performance in US-listed semiconductor companies, triggered by better-than-expected quarterly earnings from global leader Nvidia.
Major IT companies led the market higher, as traders shifted focus back to growth-oriented tech stocks. This sector-specific strength provided the necessary support to help the Nifty 50 and BSE Sensex move upward. However, gains in the broader market were tempered by continued selling pressure in the banking and financial segments. Heavyweight banking institutions saw sustained outflows, which prevented a sharper recovery in the benchmark indices.
Global attention is currently centered on the Jackson Hole economic symposium, where Federal Reserve Chair Kevin Warsh is scheduled to deliver his first major policy address in this role. The speech is a critical monitorable for investors, as the market looks for definitive signals regarding the path of US interest rates. With recent data showing US inflation at 3.7 per cent, there is anxiety about how the central bank will approach monetary policy in the coming months.
Several external risks continue to impact market stability. Concerns over navigation through the Strait of Hormuz have kept Brent crude oil prices elevated, trading near $89 per barrel. Rising energy costs create additional pressure on manufacturing and logistics sectors. Furthermore, US 10-year bond yields, currently hovering near 4.68 per cent, remain a persistent challenge for emerging markets, as higher yields often reduce the appeal of riskier assets for international investors.
Institutional data from the previous trading session shows a difference in sentiment between domestic and foreign investors. Foreign institutional investors were net sellers, offloading equities worth ₹298 crore. In contrast, domestic institutional investors continued their support, buying equities worth ₹4,977 crore, which helped prevent deeper declines. From a technical perspective, the Nifty 50 is testing the 24,000 support level. Analysts are watching to see if the index can sustain above this range, as the 24,300 to 24,500 zone acts as a resistance area for the bulls.
The market’s next phase will likely depend on the commentary from the Jackson Hole symposium and whether IT stocks can maintain their current momentum. Investors may also continue to track oil price movements and their impact on inflationary expectations.