Indian equity markets are likely to start the day with slight positive gains on Friday, though the overall mood in the market will still be a bit upset. GIFT Nifty (just like SGX Nifty) was up by 30 points, or 0.12%, at about 26,000 on NSE IX, which shows that there is a hesitant comeback for Dalal Street after the substantial sell-off on Thursday.
Markets under pressure
In the last trading session, there was a significant drop in the domestic indices, with Nifty taking a total loss of 264 points. The gloomy mood of the investors was due to the fears about possible US tariffs, continued selling by foreign institutional investors (FIIs), and unfavorable global signals. Furthermore, Analysts have indicated that the markets could be pressured in the near term due to international conflicts and uncertainty about the world.
Technical outlook
Momentum indicators have flashed a fresh sell signal on the daily charts. The Nifty index is supported immediately at around 25,800 and then at 25,720. India VIX, which is a measure of market volatility, has increased by more than 6% and closed above the 10.50 mark indicating increased fear among investors.
Global cues
US markets closed mixed overnight. On the one hand, technology stocks, with Nvidia, went down, while on the other hand, defense stocks rose as President Donald Trump proposed a $1.5 trillion military budget.
- Dow Jones: +0.55%
- S&P 500: +0.01%
- Nasdaq: -0.44%
Asian stock markets could slightly rise at the opening, as they were recovering from the previous two days’ decline, while the investors were waiting for the US payrolls data and the possibility of a Supreme Court decision on the tariffs from Trump’s era.
Currency and flows
The markets were setting themselves for important economic data and the US dollar gained power in the Asian market. The Indian rupee trimmed 3 paise off its value to finish at 89.90 versus the dollar on Thursday, weighing down on the rupee were the outflows of foreign capital and the stronger dollar.
FII-DII activity
FIIs persistently sold off stocks, divesting a total of ₹3,367 crore worth of shares. But, domestic institutional investors (DIIs) came in with a little support, purchasing equities for ₹3,701 crore.
Stocks in F&O ban
Among the stocks that were banned in F&O for the session, SAIL and Sammaan Capital are the ones which crossed the market-wide position limits.
In total, though GIFT Nifty indicates a good beginning, the investors in the market are still waiting and watching because of the global uncertainties, high volatility, and the continuing issues with trade and geopolitical situations which are on their minds.
