GIFT Nifty jumps 100 pts, signals positive start for Sensex, Nifty; crude oil, FII selling remain key risks

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Indian benchmark indices Sensex and Nifty are likely to open higher on Friday, with GIFT Nifty signalling a positive start after Thursday's sharp selloff pushed the Nifty to its lowest level of 2026. However, weak Asian markets, elevated crude oil prices, rising global bond yields and persistent foreign institutional selling could limit the recovery. The RBI's recent interest-rate hike and continued pressure on the rupee are also weighing on sentiment.

GIFT Nifty was trading at 22,366 around 8 am, up 111 points, or 0.5 percent. Indian equities suffered heavy losses on Thursday, with the Sensex plunging 1,072 points to 71,566 and the Nifty declining 371 points to 22,232 after touching a fresh 2026 low of 22,180. Foreign institutional investors sold equities worth Rs 12,943.58 crore, while domestic institutions bought shares worth Rs 10,703.11 crore.

Asian markets fall as oil, bond yields weigh

Asian equities declined on Friday and were headed for a second consecutive weekly loss as investors remained concerned about elevated energy prices, volatility in sovereign bond markets and the substantial funding requirements for artificial intelligence investments. Sentiment also weakened after a report that OpenAI's annualised revenue was $20 billion below what the company had previously indicated raised concerns over the outlook for AI-related investments.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.16 percent and was on course for a weekly decline of more than 1 percent. Japan's Nikkei fell more than 1 percent, while markets in South Korea and Taiwan were closed for holidays.

Wall Street slips as technology stocks tumble

US equities ended mostly lower on Thursday as surging crude prices, renewed inflation concerns and expectations of higher interest rates weighed on technology and semiconductor stocks. The rise in energy prices and concerns over tighter monetary conditions continued to weigh on risk appetite.

The Nasdaq Composite recorded the steepest decline among the major indices, falling 345.35 points, or 1.25 percent, to 27,193.34, just two sessions after reaching a record closing high. The S&P 500 slipped 36.41 points, or 0.47 percent, to 7,765.36, while the Dow Jones Industrial Average bucked the trend, gaining 51.77 points, or 0.10 percent, to 51,231.64.

Brent near $104 after Thursday's 4 percent surge

Crude oil prices remained elevated on Friday after surging more than 4 percent in the previous session amid escalating Middle East tensions and fears of supply disruptions. US President Donald Trump said on Thursday that Washington would not launch an attack on Iran before November's midterm elections. However, traders remained sceptical about the prospects for meaningful progress towards ending the conflict.

Brent crude futures were trading around $103.70 a barrel in Asian hours, following Thursday's rally driven by concerns over the ongoing Iran war and a hurricane approaching the US Gulf Coast that threatened oil production.

RBI tightening, foreign outflows keep outlook cautious

Ponmudi R, CEO of Enrich Money, said the RBI's 25-basis-point repo rate increase to 5.50 percent, its first hike in nearly four years, continues to weigh on sentiment by raising concerns over tighter domestic financial conditions. He added that foreign portfolio investors have extended their selling streak to ten consecutive sessions, while the rupee remains under pressure near Rs 96.80 against the US dollar.

According to Ponmudi, persistent foreign outflows and currency weakness are adding to the challenges facing domestic equities, while global cues offer little relief. He expects the near-term outlook to remain cautious, with Indian markets particularly sensitive to crude oil prices, global bond yields and foreign portfolio flows.