Indian equities are expected to open flat on Friday amid declining hopes for a US rate hike and renewed Middle East tensions, as global uncertainties continue to influence market sentiment and foreign investment flows.
Indian shares are set for a subdued opening on Friday as easing expectations of a US Federal Reserve rate rise in September are offset by renewed anxiety over the Middle East. GIFT Nifty futures pointed to a flat start, while the Nifty 50 finished Thursday at 24,395.85. This follows a week in which both the Nifty 50 and the BSE Sensex have slipped, with geopolitical unease outweighing the support from strong earnings and hopes that the Fed will keep policy steady in the near term.
Pressure from overseas selling also remains in view. Provisional exchange data showed foreign investors sold Indian equities worth 5.11 billion rupees on Thursday, their third straight session of net outflows. At the same time, US producer price data came in unchanged in July, reinforcing market bets that the Federal Reserve is unlikely to raise rates next month.
The wider market mood has also been shaped by developments in the Middle East. Washington said on Thursday it could keep a naval blockade of Iran in place indefinitely and step up economic pressure on Tehran as ceasefire talks stalled. Brent crude eased to about $87 a barrel, however, as rising inventories and weaker demand forecasts offset some of the geopolitical risk premium.
For Indian markets, the immediate backdrop remains a delicate balance between global risk aversion and signs of softer US inflation pressure. A separate Union Bank of India report said the rupee has also been buffeted by tariff fears and Middle East tensions, with traders watching whether foreign portfolio outflows continue to ease. That mix leaves domestic assets vulnerable to swings in crude, the dollar and expectations for the Fed’s next move.
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