Indian stock markets opened higher on Friday, tracking positive global sentiment after Nvidia's earnings. The BSE Sensex and NSE Nifty climbed above key levels as investors await the US Federal Reserve's update from Jackson Hole, while continuing to track domestic monsoon and inflation concerns.
Indian equity markets opened in positive territory on Friday, August 28, 2026, rebounding from a two-day decline. The BSE Sensex rose by approximately 190 points to trade above 77,100, while the NSE Nifty 50 climbed roughly 40 points to hold above the 24,100 mark.
Global Cues and Jackson Hole Focus
The recovery was largely driven by positive sentiment in global markets, particularly following strong earnings results from Nvidia in the US. This boost helped lift investor confidence early in the session. However, the market mood remains cautious as participants prepare for the upcoming address by US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Traders are looking for clarity on the future direction of US monetary policy, as interest rate expectations continue to influence global capital flows.
Domestic Risks and Market Caution
While the morning session saw buying interest, domestic investors remain mindful of underlying macroeconomic headwinds. A primary concern is the 14% monsoon deficit recorded so far, which has raised questions regarding potential food inflation and the impact on rural consumption patterns. The threat of a strengthening El Niño further complicates the outlook for the agricultural sector and broader consumption.
Foreign institutional investors (FIIs) also signaled hesitation in the previous session, offloading Indian equities worth Rs 298 crore on August 27, despite being net buyers for the month overall. Additionally, volatility in crude oil prices and fluctuating US Treasury yields continue to pressure emerging markets, keeping traders on the defensive.
The immediate focus for market participants will be whether the indices can sustain these gains throughout the trading day. Investors are likely to watch for sustained support at the 24,100 level on the Nifty and monitor any fresh updates regarding domestic inflation and FII inflow trends to gauge the strength of the current recovery.