Despite Thursday’s sharp losses due to geopolitical tensions and rising US debt worries, markets look to open slightly higher Friday on positive cues from Asia and Gift Nifty.
Mumbai | May 23, 2025
The Indian stock market is set for a mildly positive start on Friday, buoyed by strength in Asian markets and a premium in Gift Nifty, despite overnight caution from Wall Street and ongoing concerns over US fiscal policy.
Gift Nifty was trading around 24,690, nearly 38 points above Nifty futures’ previous close, signaling a tepidly optimistic opening for benchmark indices.
On Thursday, equities saw a sharp correction with the Sensex plunging 644.64 points (0.79%) to 80,951.99, and the Nifty 50 declining 203.75 points (0.82%) to 24,609.70, amid nervousness over geopolitical escalations, elevated US bond yields, and stretched valuations.
“With FIIs turning net sellers and rising global bond yields, emerging markets like India may witness capital outflows. Added to that, volatility around the upcoming F&O expiry could drive sharp sideways moves,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Key Global Cues to Watch:
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1. Asian Markets
Most Asian indices were in the green Friday:
- Nikkei 225 rose 0.48%
- Topix gained 0.5%
- Kospi advanced 0.36%
- Kosdaq slipped 0.34%
- Hang Seng futures indicated a weaker start
2. Wall Street Snapshot
US indices ended flat following the narrow passage of President Trump’s tax bill in the House:
- Dow Jones: -1.35 points at 41,859.09
- S&P 500: -2.60 points at 5,842.01
- Nasdaq: +53.09 points at 18,925.74
Top movers:
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- Nvidia +0.78%
- Tesla +1.92%
- Snowflake +13.47%
- Apple -0.36%
- First Solar -4.3%
3. US Treasury Yields
- 30-year bond yield: 5.0521%
- 10-year note yield: 4.551% (hit 4.629% intraday, a 3-month high)
4. Sensex Rejig
Effective June 23, Trent and Bharat Electronics will replace Nestle India and IndusInd Bank in the 30-share BSE Sensex, according to a BSE announcement.
5. India GDP Outlook
Morgan Stanley revised India’s FY26 growth forecast to 6.2% (up from 6.1%) and FY27 to 6.5% (up from 6.3%) due to improved external demand prospects.
Other Market Movers:
Gold Prices
- Spot Gold: $3,299.79/oz, +0.2%
- Best weekly gain since April (~3%)
Crude Oil Prices
- Brent: $64.17 (-0.42%), on track for ~2% weekly loss
- WTI: $60.88 (-0.52%)
US Jobless Claims
- 227,000 new claims (vs 230,000 expected)
Japan Inflation
- April Core CPI up 3.5% YoY, highest in over 2 years
Tags:
Indian stock market, Sensex today, Nifty 50, Gift Nifty, Asian markets, US Treasury yields, Wall Street, gold prices, crude oil prices, Trent, Bharat Electronics, Nestle India, IndusInd Bank, Morgan Stanley India forecast