Indian Markets Expected to Open Higher Amid Cautious Investor Sentiment

Indian equity markets are likely to open higher on Friday, with the Gift Nifty trading at 24,260. Despite the positive indication at the open, investors are expected to remain cautious amid elevated crude oil prices, mixed global cues, and geopolitical uncertainties.

According to Ponmudi R, CEO of Enrich Money, the market is set for a cautiously optimistic start. However, lingering macroeconomic uncertainties are likely to temper risk appetite. Investors are expected to remain selective and prone to booking profits at higher levels. While crude oil has retreated from its recent peak, it remains at relatively elevated levels with WTI hovering near the $83–84 per barrel mark. Recent diplomatic progress between Iran and Oman regarding traffic through the Strait of Hormuz has helped ease some acute supply-risk premiums.

Global cues remain mixed. Wall Street benchmarks closed flat to higher overnight, even as the latest PCE inflation print—the Federal Reserve’s preferred inflation gauge—came in slightly above expectations, leaving the near-term policy outlook uncertain. Conversely, technology and semiconductor stocks received a strong boost from Nvidia’s quarterly results, triggering a broad rally in AI-linked names and helping the Nasdaq end about 1.5% higher.

Asian markets are trading mixed, with Japan’s Nikkei firmer while South Korea’s Kospi remains under pressure. Attention has now shifted to Federal Reserve commentary, particularly the upcoming Jackson Hole keynote, as investors parse remarks for clues on the September policy path and interest-rate outlook.

On the geopolitical front, the Strait of Hormuz remains a key variable. Although Iran and Oman have reached an initial understanding on navigation, Tehran has cautioned that a durable resolution requires more than a bilateral arrangement. Crude oil prices, the rupee, and broader risk sentiment remain sensitive to developments in West Asia.

Hitesh Rathi, Technical Analyst at Angel One, noted that while frontline indices remain range-bound, a sense of uneasiness is beginning to creep into broader markets where profit booking is visible. He advised avoiding aggressive overnight positions and remaining highly selective in stock selection.

Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, added that the market recently witnessed a healthy corrective session. As long as key support levels remain intact, the trend favors bulls, and market participants may adopt a buy-on-dips approach in fundamentally strong stocks.

Corporate and market developments also include attention on active primary market offerings such as the Priority Jewels IPO and the opening of the ESDS Software Solutions IPO. Several buzzing stocks drawing market attention include Hero MotoCorp, Lenskart, Cipla, Wipro, and Tejas Networks.

"Market openings driven by global index indicators like Gift Nifty often reflect a balancing act between international macroeconomic data and domestic sentiment. As investors navigate mixed global cues, elevated crude prices, and key central bank signals, maintaining disciplined risk management and a selective approach toward fundamentally strong assets remains a prudent strategy for long-term value creation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes