MUMBAI — Indian equity markets are projected to open slightly higher on Friday, following a recovery in the previous session that broke a consecutive run of losses. Despite the anticipated positive start, overall market sentiment remains cautious as traders monitor elevated crude oil prices and continued pressure across global bond markets.
GIFT Nifty futures were trading at 24,311.50 points at 7:52 a.m. IST, pointing to a higher opening for the benchmark Nifty 50 index. In the previous session, the Nifty closed at 24,231.85, successfully halting a seven-day losing streak. Concurrently, the Sensex registered gains after posting four straight sessions of declines. Despite Thursday's recovery, both major indexes are currently down 0.6 percent for the week.
Market analysts note that while technical factors are at play, external macroeconomic headwinds continue to dictate overall direction. Ankur Punj, managing director at Equirus Wealth, pointed out that short-covering following the recent market slump is contributing to the higher opening. However, he emphasized that the underlying sentiment remains guarded due to rising crude prices linked to the conflict in West Asia.
Broader trends across the Asia-Pacific region mirrored a similar cautious stance. Asian markets opened higher on Friday but remained on track for weekly declines. Continued stress in global bond markets showed minimal signs of easing, while a diplomatic deadlock in the Gulf pushed oil prices to one-month highs. These developments have reignited concerns surrounding persistent inflation and potential disruptions to global energy supplies.
In the domestic capital markets, institutional trading activity reflected mixed participation. Provisional data from the National Stock Exchange (NSE) indicates that foreign portfolio investors (FPIs) turned net sellers after two consecutive sessions of net purchases, recording outflows of ₹583 crore. In contrast, domestic institutional investors (DIIs) provided strong support, offsetting foreign outflows with net inflows totaling ₹3,538 crore on Thursday.
As trading commences, market participants are expected to closely track incoming macroeconomic data, currency movements, and developments in international energy markets to gauge near-term direction.
"The recent movement in Indian equities highlights the delicate balance between domestic institutional support and external macroeconomic pressures. While DII inflows continue to provide a strong domestic cushion, investors must remain vigilant regarding global triggers like crude oil prices and bond yields. In times of geopolitical uncertainty and inflationary pressure, maintaining a disciplined investment strategy and focusing on fundamental business resilience is essential for long-term stability in the broader market ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
