The stock market is expected to open higher on Friday, supported by strong buying from foreign investors and hopes of faster growth in the economy. This comes ahead of the release of the GDP data, which is due later in the day.
At 8:14 am, Gift Nifty futures were trading at 24,950, suggesting a positive start above Thursday’s Nifty50 close of 24,833.6. This indicates that markets may open with gains in early trade.
Market expert VLA Ambala, Co-Founder of Stock Market Today (SMT), said that if the Nifty 50 index moves above 24,900, it may show bullish momentum as several stocks are expected to be in focus.
She added, “If the Nifty 50 breaks its immediate support level at 24,690 during the next intraday trading session, a sell-off could push prices down to 24,600 and possibly 24,470. If there is a breakout above 24,820, it could create an opportunity for intraday long positions. A gap opening of 0.75% to 1% will create immediate buying opportunities at support levels. On the other hand, a selling opportunity will arise if the market opens at a resistance level.”
In recent sessions, markets have been quite volatile, swinging between gains and losses. However, on Thursday, both Sensex and Nifty managed to close higher, with gains of nearly 0.5%.
STRONG FOREIGN INFLOWS CONTINUE
Foreign portfolio investors (FPIs) bought Indian shares worth Rs 884 crore on Thursday. This was the fifth day in a row that FPIs remained net buyers. So far in May, net foreign inflows have touched nearly Rs 21,700 crore or around $2.6 billion. If this trend continues, May could turn out to be the best month for foreign inflows since September 2024, a time when benchmark indices had hit record highs.
Domestic institutional investors (DIIs) have also supported the market. They have been net buyers for eight straight trading sessions. This steady buying by both foreign and domestic investors has helped improve market confidence.
MONTHLY GAINS FOR NIFTY
So far this month, the Nifty 50 has risen around 2%, and if gains hold, the index is set for a third straight month of growth. This rise has been helped by strong earnings reported by many companies for the March quarter, as well as reduced worries over global trade issues.
Investors are also hopeful that the Reserve Bank of India may consider reducing interest rates in the upcoming policy meeting next week, especially as inflation appears to be easing.
FOCUS ON GDP DATA
Later today, the Indian government will release its GDP figures for the January–March quarter. Many experts believe the economy grew faster during this period.
The growth is expected to have been driven by increased rural demand and higher government spending. However, private investment is still low due to uncertainty in global markets.
In the United States, stock markets ended higher overnight after a court ruling brought back former President Donald Trump’s tariffs, which had been blocked earlier. This created some unease in global trade circles, but U.S. markets held up well.
In Asia, broader markets opened on a weaker note. The MSCI Asia ex-Japan index was down 0.5% in early trade, after rising 0.6% in the previous session. This shows that global markets are still reacting to trade-related developments.
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(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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