Introduction: Market Outlook Turns Cautious Despite Global Optimism
The Indian stock market is expected to open on a cautious note on Friday as investors digest mixed global cues. While Wall Street closed at record highs and the Nikkei 225 hit another all-time peak, concerns over potential US tariffs and geopolitical risks may weigh on domestic sentiment.
On Thursday, the Sensex and Nifty 50 extended their rally, supported by the US Federal Reserve’s decision to cut interest rates by 25 basis points and hint at two more cuts later this year. However, the Gift Nifty is signaling a soft opening for Indian benchmark indices.
This article highlights the eight major factors that changed for the market overnight, providing investors with an informed perspective for the trading day ahead.
1. Gift Nifty Indicates Negative Opening for Indian Market
- The Gift Nifty was trading at around 25,472, which is 39 points lower than the Nifty futures’ previous close.
- This discount suggests a negative start for the Nifty 50 and Sensex on Friday.
- Market participants are likely to book profits after recent gains, considering the cautious global mood.
Keyword focus: Gift Nifty today, Nifty 50 opening, Sensex today, Indian stock market opening trend.
2. Wall Street Rally Boosts Global Sentiment
- On Thursday, US markets rallied strongly, extending gains from the previous session.
- The Dow Jones Industrial Average rose 124.10 points (0.27%) to 46,142.42.
- The S&P 500 gained 31.61 points (0.48%) to close at 6,631.96.
- The Nasdaq Composite surged 209.40 points (0.94%) to 22,470.73.
The rally was supported by Fed’s dovish stance and strong corporate earnings, which lifted global risk appetite.
Keyword focus: Wall Street rally, Dow Jones, S&P 500, Nasdaq Composite record high.
3. US Federal Reserve Cuts Rates by 25 Basis Points
- The US Federal Reserve announced a 25 bps interest rate cut, as widely expected by markets.
- Fed Chair Jerome Powell signaled two more rate cuts could follow this year if inflation continues to moderate.
- Lower interest rates typically boost liquidity and risk-taking appetite in equity markets.
This move supported positive sentiment across Asian and European markets, including India.
Keyword focus: US Fed rate cut, Jerome Powell, global market cues, interest rate decision.
4. Sensex and Nifty 50 End Higher for Second Day
- On Thursday, the BSE Sensex rose 320.25 points (0.39%) to close at 83,013.96.
- The NSE Nifty 50 advanced 93.35 points (0.37%) to settle at 25,423.60.
- Gains were led by banking, IT, and metal stocks, with strong buying seen in large-cap counters.
Analysts noted that risk-on sentiment has returned, but volatility may persist ahead of domestic economic data releases.
Keyword focus: Sensex today, Nifty 50 performance, Indian equity market rally, stock market closing update.
5. Nikkei 225 Hits Another Record High
- The Japan’s Nikkei 225 index surged 0.7% to scale a fresh all-time high for the second consecutive day.
- The Topix index also gained 0.84%, supported by strong export-oriented stocks and tech shares.
This indicates robust momentum in Asian equities, especially in Japan, which has been a top-performing market in 2025.
Keyword focus: Nikkei 225 record high, Topix index, Asian market rally, Japan stock market news.
6. Mixed Trends in Other Asian Markets
- South Korea’s Kospi and Kosdaq were flat, showing a pause after recent gains.
- Hong Kong’s Hang Seng Index futures pointed to a positive opening, supported by hopes of Chinese policy support.
- Shanghai Composite remained range-bound, as investors awaited new economic stimulus measures from Beijing.
While Asia is largely positive, selective buying and profit booking could dominate trade.
Keyword focus: Asian market update, Hang Seng futures, Kospi market trend, Shanghai Composite.
7. Expert View: Focus on Stock-Specific Opportunities
Ajit Mishra, SVP, Research at Religare Broking Ltd, said:
“The favorable sentiment across the key sectors would keep the tone positive. We thus recommend focusing more on stock-specific opportunities now, preferring stocks where risk-to-reward is favorable.”
This implies that sector rotation and stock selection will be critical as indices consolidate at higher levels. Investors may look at defensive sectors like FMCG and pharma along with select banking and IT stocks.
Keyword focus: market expert view, stock-specific strategy, Religare Broking, stock market tips.
8. Key Factors to Watch Today
Investors should closely monitor the following factors on Friday:
- US bond yields and dollar index movement
- Crude oil price trend and rupee-dollar exchange rate
- Foreign institutional investor (FII) flows and derivatives positions
- Upcoming domestic macro data such as WPI inflation and industrial output
- Corporate earnings announcements for Q2
These elements will play a vital role in shaping short-term market direction and deciding the risk appetite of traders.
Keyword focus: FII flows, crude oil prices, rupee movement, Indian macroeconomic data.
Conclusion: Indian Market May Open Cautiously Amid Mixed Global Cues
Despite the Wall Street rally and Nikkei 225 record highs, the Gift Nifty indicates a cautious start for Indian indices. While bullish momentum remains intact, near-term profit booking cannot be ruled out.
Investors are advised to adopt a stock-specific and risk-managed approach, focus on quality large-cap stocks, and keep a close watch on global macroeconomic developments.
The market sentiment remains positive but fragile, and the next trigger could come from domestic economic data releases and FII activity in the coming sessions.
