Indian equity markets recovered on Thursday after seven consecutive days of declines, with the Nifty gaining around 0.6%. The recovery was attributed to value buying and positive global cues.
GIFT Nifty was trading around 24,350 on Friday morning, up about 53 points or 0.22%. The movement indicated expectations of a positive opening for the domestic equity market. Following Thursday’s recovery, investors will watch whether the Nifty can extend its gains or face profit-taking at higher levels.
India VIX also provided a positive signal. The volatility index, which reflects investor fear and potential market volatility, fell by around 5% to 10.76. A decline in VIX generally indicates lower levels of market nervousness and a relatively stable trading environment.
Indian markets had remained under selling pressure in recent sessions. After around seven consecutive trading sessions of weakness, investors bought at lower levels on Thursday. The move was described as value buying, with investors showing interest in stocks considered attractively valued after the decline.
According to experts, a recovery in the domestic market could continue if there is no major negative change in global cues. Investors will also be watching opportunities emerging across banking, energy, defence, railway and industrial sectors alongside broader market trends.
All three major US stock indices closed lower on Thursday. Rising Treasury yields affected investment in risk assets, while weak corporate results from the retail sector raised concerns over consumer spending and economic activity.
Higher oil prices also remained a concern for global investors. Elevated crude oil prices can increase inflationary pressure, potentially affecting central-bank policies and equity markets.
Asian markets also showed weakness on Friday and remained under weekly pressure. Conditions in global bond markets and rising energy prices remained key concerns for investors.
Geopolitical tensions in the Middle East continued to pose risks to oil supplies. Gold prices remained stable, while the precious metal remained on track for a third consecutive weekly gain. A weaker dollar and developments related to US bond yields supported gold. Movements in the dollar could also affect global investor sentiment.
Shares of Bharat Petroleum Corporation (BPCL), Hindustan Aeronautics Limited (HAL), RailTel Corporation of India, Satvik Green Energy and Samvardhana Motherson International could remain in focus on Friday due to corporate activities and company-specific developments.
In the energy sector, movements in crude oil prices could affect stocks such as BPCL. Investors will also track HAL in the defence sector, RailTel in connection with railway and government projects, and companies in the auto-component sector.
