Signs of a potential resolution in the US-China trade conflict lifted global markets, even as India-Pakistan border tensions persisted without major escalation. Statements from both sides suggest a willingness to avoid full-scale war, prompting bulls to anticipate a relief rally. Meanwhile, gold prices continued their sharp decline.
In derivatives trade, Gift Nifty closed at 24,220 on Friday night, rising to 24,276 in early trading today. This points to a strong start for the Nifty index.
European markets ended Friday on a positive note, buoyed by robust corporate earnings. However, Wall Street posted mixed results. Gains in technology shares helped lift the Nasdaq and the S&P 500, even as broader April performance remained negative. The Dow Jones has declined 4.5% so far this month, with the S&P 500 down 1.5%. The Nasdaq, however, is up by 0.5%.
Tesla shares surged 9.8% and Nvidia climbed 4.5% on Friday. Major earnings are due this week from Amazon, Apple, Meta, and Microsoft, along with Visa, Coca-Cola, Eli Lilly, and Berkshire Hathaway. Of the companies that have reported so far, 73% have beaten analyst expectations, though concerns remain over the outlook for the second quarter and the full financial year.
On Friday, the Dow Jones Industrial Average edged up by 20.10 points (0.05%) to 40,113.50, the S&P 500 gained 40.40 points (0.74%) to 5,525.21, and the Nasdaq rose by 216.90 points (1.26%) to 17,382.90.
However, US futures were trading lower this morning, with the Dow, S&P 500, and Nasdaq futures down by 0.36%, 0.50%, and 0.64% respectively.
Asian markets mostly closed higher on Friday, driven by optimism over a potential US-China agreement. Japan’s Nikkei climbed 1.9%. Gains have continued into this morning, with the Nikkei up 0.75%. Hong Kong markets also advanced, though the Shanghai Composite showed little change.
Persistent concerns over the India-Pakistan border situation continued to weigh on Indian markets. Friday’s session saw heightened volatility, with the Sensex swinging between 78,605 and 80,131 before closing 0.74% lower. The Nifty moved between 23,847 and 24,366 before ending the day down 0.86%.
Banks and financials led the decline, with mid-cap and small-cap indices suffering sharper falls — both closing over 2.5% lower. Except for IT, all major sectoral indices ended in the red, with real estate, auto, consumer durables, oil and gas, pharma, healthcare, metals, and media sectors seeing losses.
Nifty fell by 207.35 points (0.86%) to 24,039.35
Sensex declined by 588.90 points (0.74%) to 79,212.53
Bank Nifty slipped 537.35 points (0.97%) to 54,664.05
Nifty Midcap 100 plunged 2.55% to 53,570.20
Nifty Smallcap 100 dropped 2.45% to 16,547.20
Breadth was sharply negative, with only 689 gainers against 3,285 decliners on the BSE. On the NSE, 455 stocks rose while 2,428 declined.
Despite the weakness, foreign investors remained net buyers, purchasing equities worth ₹2,952.33 crore on Friday. Domestic funds also turned buyers, picking up shares worth ₹3,539.85 crore. In the last eight sessions, foreign inflows into Indian equities have crossed ₹32,500 crore.
Technically, if the Nifty holds support at 23,800, a return to a bullish trend is possible. Immediate support levels are seen at 23,885 and 23,765, while resistance is expected around 24,280 and 24,400.
Reliance Industries reported an 8.8% rise in fourth-quarter revenue, with net profit up 6.4%, beating expectations despite a slight dip in operating margins. The company has initiated moves to partner with China’s Haier in its Indian business, with Sunil Mittal of Airtel also reportedly involved.
Reliance Jio posted a strong performance, with revenue up 17.8% and net profit soaring 25.8%. Operating margin expanded to 50.1%.
Indraprastha Gas saw a 9.8% rise in revenue but an 8.8% drop in net profit, with margins contracting.
IDFC First Bank reported a 9.8% increase in net interest income but a 58% decline in profit, due to higher provisioning.
India Cements’ revenue fell 3.9%, and net loss widened to ₹75.7 crore.
MRPL posted a 2.9% fall in revenue and a 68% decline in profit.
Tejas Networks’ revenue surged 43.7%, but it still reported a loss of ₹71.8 crore.
L&T Finance saw a 3.8% revenue rise and a 14.9% jump in net profit.
Force Motors’ revenue grew 17.1%, while net profit surged 210%, aided by a one-time income.
Earnings scheduled for release today include: Ultratech Cement, Adani Green, Adani Total Gas, Aditya Birla Sun Life AMC, Nippon Life India AMC, CSB Bank, IDBI Bank, Central Bank of India, UCO Bank, Fino Payments Bank, Go Digit General Insurance, PNB Housing Finance, IRFC, TVS Motor, Castrol India, and Oberoi Realty.
Gold prices, which had dropped 6% from record highs last week, continued to weaken as the new week began. On Friday, gold fell to $3,284 an ounce before recovering slightly to close at $3,321.30. In early trading today, prices moved between $3,282 and $3,338.
Some investors believe the correction in gold could be temporary, supported by continued central bank buying and reduced investor confidence in US assets. However, most analysts expect further declines before short-term stability is achieved.
In Kerala, gold prices fell by ₹80 per sovereign on Thursday, settling at ₹72,040, a trend that continued into the weekend.
The dollar index firmed slightly to 99.47 on Friday and rose further to 99.60 in early trade today.
The Indian rupee weakened slightly, closing at 85.45 against the dollar on Friday. China’s yuan remained steady at 7.29 per dollar.
Cryptocurrencies saw heightened volatility at higher levels. Bitcoin, after briefly crossing $94,000, slipped below $93,000 this morning. Ether was trading close to $1,760.
