The Indian stock market is poised for a positive start on Friday, as indicated by the performance of Gift Nifty and other global cues. After a steady close in the previous session, investors are keenly watching several major developments including US inflation data, jobless claims, and Infosys’ record share buyback plan. Let’s take a closer look at the 10 major triggers that could shape market sentiment today.
Indian Market Recap: Sensex and Nifty Close Higher
The domestic equity market ended on a positive note on Thursday as buying emerged across sectors.
- Sensex rose 123.58 points (0.15%) to close at 81,548.73.
- Nifty 50 gained 32.40 points (0.13%) to settle at 25,005.50.
Market experts believe rotational buying across key sectors like defence and railways is supporting the market, with early signs of sectoral reversals becoming visible.
Expert View:
“Rotational buying across key sectors and early signs of a reversal in themes like defence and railways are likely to keep the undertone positive. We continue to advocate a ‘buy on dips’ strategy and suggest focusing on quality names moving in line with the benchmark,” said Ajit Mishra, SVP – Research, Religare Broking Ltd.
1. Gift Nifty Points to Positive Opening
Gift Nifty, which indicates early trends for the Nifty index, traded around 25,181 level, a premium of nearly 77 points from the previous close of Nifty futures.
This signals a positive start for Indian stock market indices, suggesting bullish sentiment among traders.
Keyword Focus: Gift Nifty today, Nifty 50 outlook, Indian stock market opening
2. Wall Street Ends at Record Highs
The US markets provided strong global cues overnight, with all major indices closing at record highs.
- Dow Jones jumped 1.36% to 46,108.00
- S&P 500 surged 0.85% to 6,587.47
- Nasdaq rose 0.72% to 22,043.08
The rally was supported by easing inflation concerns and optimism over the US economy. This positive sentiment could spill over into Indian equities.
Keyword Focus: Wall Street today, Dow Jones rally, US stock market news
3. India-US Trade Deal Talks Progressing
A key geopolitical development that can impact markets is the progress on an India-US trade deal.
- Sergio Gor, the US ambassador-designate to India, stated that both countries are “not that far apart” on finalising the deal.
- Union Commerce Minister Piyush Goyal hinted that the first tranche of the agreement could be finalised by November 2025.
Improved trade relations could boost investor confidence, particularly in export-oriented sectors like IT, pharma, and manufacturing.
Keyword Focus: India-US trade deal, Piyush Goyal trade talks, bilateral trade agreement
4. US Inflation Rises Sharply in August
US consumer inflation surged at its fastest pace in seven months, surprising markets.
- CPI rose 0.4% in August vs. 0.2% in July
- On an annual basis, CPI rose 2.9%, up from 2.7% in July
- Economists expected a 0.3% monthly and 2.9% annual increase
Higher inflation could impact US Federal Reserve’s interest rate stance, which indirectly influences foreign fund flows into emerging markets like India.
Keyword Focus: US CPI data, US inflation August, Fed rate hike fears
5. Rising US Jobless Claims Signal Slowing Labour Market
Fresh data shows that US jobless claims jumped sharply last week.
- Initial claims rose by 27,000 to 263,000 for the week ending September 6
- Market expectation was 235,000 claims
This sharp rise indicates a potential slowdown in the US labour market, which could reduce the likelihood of aggressive rate hikes by the Federal Reserve.
Keyword Focus: US jobless claims, US labour market, Fed policy outlook
6. Infosys Announces Record ₹18,000 Crore Share Buyback
A major corporate development that can impact IT stocks is Infosys’ biggest-ever share buyback plan.
- Infosys will repurchase 10 crore fully paid-up equity shares
- The buyback price is set at ₹1,800 per share, about 19% premium to the last close on BSE
- The buyback represents 2.41% of total paid-up equity share capital
This move is likely to boost investor sentiment in the IT sector and support the stock price in the near term.
Keyword Focus: Infosys share buyback, Infosys news, IT stock outlook
7. Sectoral Rotation Driving Market Momentum
Market analysts are observing a trend of rotational buying across key sectors such as defence, railways, banking, and FMCG.
- Defence and railways stocks are showing early signs of a reversal after recent corrections
- Banking stocks remain resilient amid stable earnings
- FMCG and auto are witnessing selective accumulation
This sectoral churn may continue to support the market’s upward momentum.
Keyword Focus: sector rotation, defence stocks India, railway stocks rally
8. Technical View: Nifty Above 25,000 Crucial
Technically, the Nifty 50 closing above the psychological 25,000 level is a positive breakout signal.
- Analysts see immediate support at 24,850
- Resistance is placed near 25,300–25,350 zone
- A breakout above 25,350 may open room for further upside
Traders are advised to adopt a buy on dips strategy, especially in large-cap quality stocks aligned with the benchmark.
Keyword Focus: Nifty support resistance, technical outlook, Nifty 50 levels
9. FIIs and DIIs Activity to Be Watched
Institutional flows remain a key driver of market trends.
- Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) activity will be closely watched today
- Any sharp buying by FIIs could accelerate the upside momentum
- A reversal in FII selling can be a strong bullish trigger
Keyword Focus: FII DII data, foreign fund flows, Indian stock market trends
10. Global Cues Remain Mixed But Positive Bias
Overall, global cues are slightly mixed but leaning positive thanks to strong US market gains, progress on the India-US trade deal, and expectations of a pause in Fed rate hikes despite rising inflation.
Asian peers are also trading steady, which may support Indian equities in the early trade.
Keyword Focus: global market trends, Asian markets today, global cues for Sensex Nifty
Bottom Line: Positive Start Expected for Indian Stock Market
With Gift Nifty trading higher, US markets at record highs, Infosys buyback announcement, and progress in trade talks, the Indian stock market is expected to open on a firm note on Friday.
Investors are advised to stay stock-specific, accumulate quality names across sectors, and use any intraday dips as a buying opportunity as market sentiment remains broadly bullish.
