Mumbai, Aug 28: Indian stock markets are likely to open on a positive note on Friday, supported by gains in US technology stocks and easing crude oil prices. However, investors are expected to remain cautious ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium.
The GIFT Nifty was trading at 24,255.5, up 55.5 points, or 0.23 per cent, around 8 am, signalling a firm start for the domestic benchmarks.
Global markets received a boost from a strong performance on Wall Street, where technology stocks rallied after Nvidia delivered an upbeat outlook. The chipmaker’s forecast strengthened investor confidence in continued demand for artificial intelligence-related products and infrastructure.
The Nvidia-led gains pushed the Nasdaq Composite up 1.57 per cent, while the S&P 500 advanced 0.72 per cent. The Dow Jones Industrial Average also ended higher, gaining 0.20 per cent.
The positive global cues could provide some support to Indian equities after the sharp decline in the previous session. On Thursday, the Nifty 50 fell 116.90 points, or 0.48 per cent, to 24,090.85, while the Sensex declined 539.35 points, or 0.70 per cent, to 76,933.59.
However, Asian markets were more cautious on Friday as investors shifted their attention to Warsh’s Jackson Hole address. Traders are looking for clues about the Federal Reserve’s approach to inflation and the future path of US interest rates.
The Fed chair’s comments could have a wider impact on global equity markets, bond yields, currencies and foreign investment flows. Any indication of a change in the US interest-rate outlook could influence investor sentiment towards emerging markets such as India.
Crude oil prices are another factor supporting sentiment. Brent crude was trading below the previous session’s levels, easing some concerns over input costs and inflation. Lower oil prices can be positive for India because the country depends heavily on imports to meet its energy requirements.
For Indian investors, the IT sector could remain in focus following the strong technology rally in the US. Positive sentiment around artificial intelligence spending may also support domestic technology stocks, although global rate expectations and currency movements will remain important factors.
Overall, Dalal Street is expected to begin Friday’s session with a positive bias, but investors are likely to remain selective and cautious ahead of the Federal Reserve chair’s speech and other global market cues.