Indian indices poised for muted open as global markets slide
The Gift Nifty indicated a lower start for Indian markets on Friday, while Wall Street and Asian benchmarks recorded sharp declines.
Indian equities are expected to open lower on Friday, with the Gift Nifty trading around 24,440, down about 0.65% from the previous close, signaling a muted start for the Sense and Nifty indices.
On Thursday, the BSE Sensex rose 2,008.61 points (2.60%) to close at 79,310.01 and the NSE Nifty 50 gained 576 points (2.40%) to end at 24,536.60, marking a sixth consecutive session of gains.
"Markets extended their winning streak for the sixth consecutive session on Thursday, with benchmark indices witnessing strong buying interest. The Nifty traded around 24,540, up nearly 2.5%, while the Sensex advanced close to 2,000 points to around 79,373, reflecting a sharp improvement in investor sentiment," said Ajit Mishra, senior vice-president of research at Religare Broking.
Analysts noted that the Sensex remains in a sideways-to-bullish zone, supported by a close above the 200-day EMA and favorable derivatives positioning. Holding above 76,500–76,900 is seen as critical, and a breakout above 78,000 could trigger further upside, though profit-taking may occur given elevated RSI levels.
For the Nifty 50, technical indicators show the index has reclaimed key moving averages, suggesting a bullish reversal, but the RSI is in the overbought zone near 75, indicating possible short-term profit booking or consolidation. Support levels are identified near 24,200 and 24,000, with resistance at 24,800 and 25,000.
In the United States, Wall Street indices fell sharply on Thursday, erasing gains from the post-midterm rally. The Dow Jones Industrial Average dropped more than 1,800 points, the Nasdaq Composite fell 5.5%, and the S&P 500 declined 4.4%, each posting their worst session since April 2025.
Asian markets also opened lower. South Korea's KOSPI plunged over 8% in early trading, triggering a circuit breaker as semiconductor and technology stocks sold off. Japan's Nikkei 225 fell more than 6%, mirroring a sell-off in AI-related stocks on Wall Street. Taiwan's Taiex index continued its decline, dropping to 37,841.36 after a 16% fall over five sessions.