Indian equity markets are expected to begin Friday’s trading session on a cautious note, with GIFT Nifty indicating a mildly negative opening for the benchmark Nifty 50. GIFT Nifty was around 24,432–24,444 in early trade, pointing to a subdued start for domestic equities.

The weak opening signal comes despite a broadly positive global backdrop. US stocks rallied overnight, supported by gains in technology shares and easing concerns over inflation. Asian equities were also largely higher, with investors encouraged by softer US inflation data and reduced expectations of an immediate Federal Reserve rate hike.

US markets provide positive cues

Wall Street ended higher, with the S&P 500 reaching a record level as investors reacted positively to signs that US inflationary pressures are moderating. Cooling inflation has reduced expectations of an imminent rate hike by the Federal Reserve, supporting risk appetite across global markets.

Asian markets trade higher

Asian markets were broadly positive on Friday. Japan’s Nikkei and South Korea’s Kospi gained, while the broader MSCI Asia-Pacific index was also headed for a strong weekly performance. Technology and AI-related stocks remained among the key drivers of the regional rally.

Crude oil remains a key concern

Despite positive global cues, crude oil prices remain a major risk for Indian markets. Brent crude was trading near $87 per barrel, with geopolitical tensions involving the US and Iran keeping supply concerns elevated. Higher oil prices could increase India’s import bill and put pressure on inflation and the rupee.

Previous session

On Thursday, the Sensex gained 113.61 points, or 0.15%, to close at 78,079.96, while the Nifty 50 declined 40.10 points, or 0.16%, to settle at 24,395.85. The session remained volatile amid global uncertainty and weekly derivatives expiry.

Stocks to watch

Investors are likely to track Tata Motors Passenger Vehicles, LG Electronics India, Indigo Paints, Honasa Consumer, Ashok Leyland and Physicswallah during Friday’s session, alongside movements in IT, banking, metal and energy stocks.

Market outlook

The Indian market may see a flat-to-negative opening followed by volatility. Positive global equity cues could provide support, but elevated crude prices, Middle East tensions, foreign fund flows and currency movements are likely to remain important factors for traders.