The Indian stock market is poised for a cautious opening on Friday, with benchmark indices Sensex and Nifty 50 likely to start on a muted note. This outlook comes despite positive momentum in global markets, which have rallied as geopolitical tensions show signs of easing.
Gift Nifty Signals Tepid Start
Key indicators suggest a subdued beginning for the trading session. The Gift Nifty was trading around the 25,333 level, reflecting a discount of nearly 17 points from the Nifty futures' previous close. This discount typically signals a lack of strong bullish sentiment among investors, pointing towards a tepid or flat opening for the domestic indices.
Global Markets Rally on Eased Tensions
In contrast to the muted Indian outlook, global markets have experienced significant gains. The rally was triggered by a reduction in geopolitical risks, notably after former President Donald Trump rescinded tariff threats on European allies regarding Greenland. This development has injected optimism into international financial markets.
Asian Markets Trade Higher
Asian markets followed the positive trend from Wall Street, trading higher on Friday. Key performances include:
- Japan's Nikkei 225 gained 0.25%
- Topix index rose 0.27%
- South Korea's Kospi increased by 1.11%
- Kosdaq advanced 0.74%
- Hong Kong Hang Seng index futures indicated a higher opening
Wall Street Posts Strong Gains
Overnight, Wall Street witnessed a robust rally, with major indices closing significantly higher:
- Dow Jones Industrial Average surged 306.78 points, or 0.63%, to close at 49,384.01
- S&P 500 climbed 37.73 points, or 0.55%, ending at 6,913.35
- Nasdaq Composite jumped 211.20 points, or 0.91%, finishing at 23,436.02
These gains underscore the positive sentiment in global equities, driven by the easing of geopolitical concerns. However, the Indian market appears to be decoupling slightly, with local factors and the Gift Nifty trend suggesting a more cautious approach from investors.
Market participants will be closely monitoring domestic cues and global developments throughout the trading day to gauge the direction of the indices. The disparity between global rallies and local muted signals highlights the complex interplay of international and domestic factors influencing the Indian stock market.
