Indian stock markets are likely to open on a flat to negative note on Friday amid mixed global cues, with all eyes on US-China deals. Gift Nifty at 23,675 indicates a gap-down opening of about 50-60 points for the Nifty.
Hariprasad K, SEBI-registered research analyst and founder of Livelong Wealth, said investors continue to remain cautious on the geopolitical front after Chinese President Xi warned that tensions surrounding Taiwan could potentially trigger larger conflicts between the US and China. “While markets are currently focusing on the positive diplomatic developments, geopolitical headlines are still likely to remain the biggest source of volatility globally,” he cautioned.
On the domestic front, earnings season will remain a key stock-specific trigger today. Major companies including Tata Steel, Cochin Shipyard, SAIL, and Gland Pharma are scheduled to announce their quarterly results, making metals, defence, and pharma stocks important sectors to watch during today’s session, he further said.
Most equities across the Asia-Pacific region are down in early deals on Friday.
Meanwhile, foreign institutional investors (FIIs) have slowed down their selling.
Ponmudi R, CEO of Enrich Money, said FIIs turned net buyers in the previous session, offering some short-term support to market sentiment. However, sustained and consistent institutional inflows will be essential to improve broader market confidence and support a stronger recovery. Domestic institutional investors (DIIs) continue to provide stability through steady domestic buying activity.
Overall, market sentiment is likely to remain cautious and headline-driven, with crude oil movement, rupee trend, institutional flows, and global geopolitical developments expected to remain the key drivers for Indian equities in the near term, said Ponmudi.
According to Hariprasad, despite the improving sentiment in the last couple of days, markets still remain highly headline-driven due to geopolitical uncertainties and crude oil volatility. From a risk-management perspective, avoiding aggressive overnight leveraged positions continues to remain a prudent strategy until global stability improves further, he added.