Positive Opening Expected in Indian Stock Market
The Indian stock market is set for a positive start on Friday, September 5, 2025, as trends from the Gift Nifty indicate strength in the benchmark indices Nifty 50 and Sensex. The Gift Nifty was seen trading around the 24,885 mark, reflecting a premium of nearly 57 points over the previous close of Nifty futures. This suggests that Nifty 50 may open higher, in line with global market cues.
Both Sensex and Nifty 50 are expected to remain upbeat, supported by favorable global trends, strong foreign fund inflows, and healthy macroeconomic data.
Global Market Trends Supporting Indian Equities
The positive outlook in Indian markets is largely influenced by strong performances in global equities.
- US Markets: Wall Street closed higher on Thursday, with the Dow Jones, S&P 500, and Nasdaq all posting gains on the back of easing treasury yields and optimism around the US economy.
- Asian Markets: Early Asian market trends were also positive, with Nikkei, Hang Seng, and Shanghai Composite trading in the green, boosting sentiment for emerging markets.
- Crude Oil Prices: Brent crude was hovering near $78 per barrel, a level considered favorable for India’s import-heavy economy.
These global market cues are expected to provide tailwinds to Indian benchmark indices in Friday’s trade.
Gift Nifty Signals a Strong Start
The Gift Nifty, which serves as an early indicator for the Indian stock market, was trading around 24,885, up nearly 57 points from the Nifty futures’ previous close. This premium reflects investor optimism and suggests a gap-up opening for Nifty 50.
Market participants believe the 25,000 psychological mark could be tested soon if global trends remain positive and buying continues in banking and IT sectors.
Key Factors Driving Nifty 50 and Sensex Today
1. Foreign Institutional Investors (FIIs) Activity
- FIIs have been net buyers in recent sessions, showing confidence in Indian equities.
- Continuous inflows into large-cap stocks such as Reliance Industries, HDFC Bank, and Infosys have supported the benchmarks.
2. Domestic Institutional Investors (DIIs) Support
- DIIs, including mutual funds, have also increased buying in select sectors, providing strong support to the market.
3. Economic Data Boost
- India’s Q1 FY26 GDP growth exceeded expectations, strengthening the case for robust domestic demand.
- Strong manufacturing PMI data and higher tax collections also indicate economic resilience.
4. Sectoral Rotation in Play
- IT, Pharma, and Banking stocks are expected to remain in focus.
- Auto stocks may see movement ahead of the festive season demand outlook.
Nifty 50 Technical Outlook for September 5
Market experts believe Nifty 50 is likely to trade with a positive bias today.
- Support Levels: 24,750 and 24,600
- Resistance Levels: 24,950 and 25,100
If Nifty manages to hold above 24,750, a rally towards 25,000 levels is possible. On the downside, a break below 24,600 could trigger mild profit booking.
Sensex Technical Outlook for September 5
The BSE Sensex closed near 82,100 in the last session and is expected to open higher today.
- Support Levels: 81,750 and 81,500
- Resistance Levels: 82,500 and 82,900
Traders expect Banking, IT, and FMCG stocks to drive momentum on the Sensex.
Stocks to Watch Today
Banking Sector
- HDFC Bank, ICICI Bank, and Axis Bank are expected to see buying interest.
- PSU banks may continue their strong performance after reporting improved credit growth.
IT Sector
- Infosys, TCS, and Wipro are likely to remain in focus as global tech demand outlook improves.
Auto Sector
- Maruti Suzuki, Tata Motors, and Mahindra & Mahindra could see action ahead of festive season sales expectations.
Energy Sector
- Reliance Industries and ONGC may attract attention due to stability in crude oil prices.
Expert Views on Market Outlook
Market analysts remain optimistic about Indian equities in the short term.
- Technical Experts suggest that if Nifty sustains above 24,750, the rally towards 25,000 will continue.
- Fundamental Analysts highlight that India’s strong economic growth and robust corporate earnings remain key drivers.
- Global Market Strategists believe Indian equities are well-positioned among emerging markets due to macro stability and policy support.
Investment Strategy for Traders and Investors
For Traders
- Focus on intraday opportunities in banking, IT, and auto stocks.
- Maintain a strict stop-loss below support levels.
- Watch for breakouts above 25,000 on Nifty for momentum trades.
For Investors
- Stay invested in quality large-cap stocks.
- Accumulate on dips in sectors such as banking, IT, pharma, and energy.
- Diversify portfolios to manage volatility ahead of global macro events.
Market Sentiment Ahead of RBI Policy
Investors are also keeping an eye on the upcoming RBI monetary policy. While no major rate cut is expected, commentary on inflation, liquidity, and growth will play a crucial role in shaping market direction.
Conclusion: Nifty 50 and Sensex Poised for Positive Momentum
On September 5, 2025, the Indian stock market is expected to open higher, supported by global cues, strong FII inflows, and favorable economic data. With the Gift Nifty trading at a premium, both Nifty 50 and Sensex are likely to remain upbeat.
However, traders should remain cautious near resistance levels and keep an eye on global market developments, crude oil prices, and upcoming RBI commentary. For long-term investors, this is an opportunity to accumulate quality stocks, as India’s equity market outlook remains bullish.
