Indian Markets Set for Weak Friday Open as Global Tensions, FII Selling Drag NIFTY Futures

Muted Asian cues, renewed US-Iran tensions, heavy FII outflows, and sharp losses in heavyweight stocks signal a cautious start for Sensex and NIFTY50 today.

A cautious start is anticipated for the Indian benchmarks today. NIFTY futures declined as a result of muted Asian cues, and futures at Ahmedabad's GIFT City indicated downward. That comes from one of the lowest performances in recent weeks from Thursday's session.

Broad-based selling on Thursday caused both benchmarks to plummet. Due to significant losses in major enterprises, including Reliance Industries, HDFC Bank, ICICI Bank and Bharti Airtel, the Sensex lost more than 1,200 points and the NIFTY50 fell over 365 points. As traders responded to growing geopolitical risks, it was the most severe session since the Budget Day drop.

There was pressure on markets around the world. Asian indices saw a general decline on rumors that, despite recent nuclear negotiations, tensions between the US and Iran had escalated once more. Both Hong Kong's Hang Seng and Japan's Nikkei gave ground, indicating a risk-averse approach. Despite a strong increase in oil prices, Wall Street's major indexes ended the day lower, with the Dow, S&P 500 and Nasdaq all retreating due to geopolitical concerns.

On Thursday, shares valued at around ₹880 crore were sold by foreign institutional investors who were once again net sellers. Institutional investors in the country also shifted to the sell side. However, FIIs have been net buyers this month.

On Friday, traders are keeping a few particular stocks in mind. Following the promoter's agreement to sell the majority of the company, Novartis India is under scrutiny. While Pace Digitek makes news with a big contract award, ABB India and CIE Automotive India will highlight their quarterly earnings. In ADR markets, shares of software and IT suffered strong selling. Energy and related sectors are likely to be impacted by rising crude oil prices.

The market still appears weak from a technical standpoint. A Friday breach below recent lows, according to analysts, might intensify the bearish bias. The NIFTY50 closed close to trend line support. While the downside put interest leads to a support zone close to 25,000, the key barrier is still high.