Markets opened on Friday on a cautious note as investors remained disappointed by the lack of concrete outcomes from the second day of talks between US President Donald Trump and Chinese President Xi Jinping. Fears are also mounting that Washington could launch fresh strikes on Iran soon after Trump returns from China, reigniting geopolitical tensions in West Asia.
The uncertainty pushed Brent crude above $107 a barrel, lifted the dollar index past 99, and dragged Asian markets and US futures lower.
Gift Nifty, which closed at 23,845 on Thursday night, fell to 23,647 in early trade Friday, indicating a weak opening for Indian equities.
US markets ended at record levels on Thursday, supported by gains in technology stocks and optimism around Trump’s China visit benefiting major American exporters.
Cisco Systems surged 13 percent after raising its revenue outlook and announcing plans to cut 4,000 jobs. Nvidia climbed 4 percent after the US allowed sales of its H200 chips to ten Chinese companies.
The Dow Jones rose 370.26 points, or 0.75 percent, to close at 50,063.46. The S&P 500 gained 56.99 points, or 0.77 percent, to end at 7,501.24, while the Nasdaq Composite advanced 232.88 points, or 0.88 percent, to 26,635.22.
US futures traded lower Friday morning. Dow futures were down 162 points, S&P 500 futures lost 20 points, while Nasdaq futures fell 100 points.
HDFC Bank ADR rose 4.02 percent in regular trade and edged up further to $24.85 in after-hours trading.
ICICI Bank ADR gained 1.95 percent before slipping 0.69 percent in extended trade to $26.00.
Infosys ADR fell 1.69 percent but recovered 0.94 percent later to close at $11.77. Wipro added 1.65 percent and rose another 1.08 percent in after-hours trading.
Political uncertainty deepened in the UK after the resignation of health secretary, Wes Streeting. Reports suggest the former deputy prime minister, Angela Rayner, could challenge Prime Minister Keir Starmer for Labour leadership.
Despite the uncertainty, European markets closed higher on Thursday. Asian markets, however, weakened Friday amid disappointment over the Trump-Xi summit.
Japan’s Nikkei dropped around 1 percent. South Korea’s Kospi, after crossing the 8,000 mark for the first time, slipped 1.5 percent. Hong Kong’s Hang Seng fell 0.60 percent, while Shanghai lost 0.40 percent.
Indian equities staged a strong rally on Thursday despite rising crude prices and rupee weakness.
The rally was driven largely by expectations that India could announce tax concessions to attract foreign investment into government bonds. A Bloomberg report said the government is considering cutting capital gains tax on foreign investments in Indian sovereign bonds from 20 percent to 3-5 percent.
Banking, financials, metals, pharma, healthcare and consumer durable stocks led the rally, while IT stocks remained weak amid concerns over slower global technology spending and inadequate AI investments by Indian firms.
Gold finance stocks rebounded after recent declines, while Kerala-based banks also recovered sharply.
Foreign institutional investors turned net buyers, purchasing equities worth ₹187.46 crore. Domestic institutional investors bought shares worth ₹684.33 crore.
The Sensex jumped 789.74 points, or 1.06 percent, to close at 75,398.72. Nifty 50 climbed 277 points, or 1.18 percent, to 23,689.60. Bank Nifty rose 1.26 percent to 54,128.95.
Tata Motors reported strong growth in its passenger vehicle business in India, with sales volumes rising 37 percent and revenue up 49.4 percent. However, weaker margins and lower revenue at Jaguar Land Rover limited overall revenue growth to 7.2 percent. Net profit declined 31.3 percent.
United Spirits posted 3.7 percent revenue growth and a 28 percent rise in net profit. Margin improved to 19.4 percent from 17.3 percent.
Voltas reported just 2.5 percent revenue growth, while net profit dropped 51.8 percent.
Muthoot Finance posted a sharp jump in fourth-quarter earnings. Net interest income rose 79 percent, while net profit surged 105 percent to ₹3,086 crore. Loan assets expanded 50 percent.
Apollo Tyres reported 14 percent growth in revenue and a 241 percent jump in net profit.
Gold weakened amid fears of renewed US-Iran conflict and measures by India to curb gold imports.
Gold closed Thursday at $4,653 an ounce, down $37, after swinging between $4,613 and $4,719. It slipped further to around $4,612 Friday morning.
In Kerala, 22-carat gold rose ₹240 per sovereign to ₹1,19,040.
Silver declined to $82.50 an ounce Friday morning. Platinum stood at $2,040, palladium at $1,418 and rhodium at $9,450.
Crude oil continued its rally. Brent crude climbed to $107.20 a barrel Friday morning, while WTI crude rose to $102.69.
The dollar index climbed to 99.06 Friday morning from Thursday’s close of 98.82. The euro weakened to $1.1649, while the pound slipped to $1.3368. The Japanese yen weakened to 158.47 against the dollar.
The rupee, which briefly weakened to 95.96 against the dollar Thursday morning, recovered after reports of possible tax incentives for foreign bond investors. The rupee finally closed at 95.76.
Industrial metals traded mixed. Copper fell 0.78 percent, while aluminium hit a one-year high above $3,666 before easing slightly.
Rubber prices strengthened internationally, with RSS-3 rising to $296.30 per quintal in Bangkok. Kerala RSS-4 prices climbed to ₹26,200.
Cocoa prices declined for a third straight session, falling 3.87 percent to $4,223 a tonne.
Cryptocurrencies rebounded sharply. Bitcoin moved above $81,500, while Ether traded above $2,290 and Solana above $92.
Sensex: 75,398.72 (+1.06%)
Nifty 50: 23,689.60 (+1.18%)
Bank Nifty: 54,128.95 (+1.26%)
Midcap 100: 60,839.70 (+1.12%)
Smallcap 100: 17,991.55 (-0.01%)
Dow Jones: 50,063.46 (+0.75%)
S&P 500: 7,501.24 (+0.77%)
Nasdaq: 26,635.22 (+0.88%)
Dollar: ₹95.76
Gold (ounce): $4,653
Gold (sovereign): ₹1,19,040
Brent crude: $105.72