Equity benchmark indices Sensex and Nifty 50 are likely to open cautiously on Friday, tracking mixed overnight global cues. Asian markets traded mostly lower, while US stocks closed higher overnight, with the S&P 500 and Dow Jones hitting record highs. 

However, on Thursday, Indian markets tumbled sharply as investors worried about the impact of 50% US tariffs on India’s economic growth.

Domestic Market Recap

On Thursday, Indian indices closed in the red:

• Sensex crashed by 705.97 points (0.87%) to close at 80,080.57
• Nifty 50 moved down by 211.15 points (0.85%) to settle at 24,500.90

Gift Nifty

Gift Nifty was trading near 24,674, around 23 higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

US stocks closed higher on Thursday, with the S&P 500 and Dow Jones Industrial Average hitting record highs.

• The Dow Jones Industrial Average surged by 71.67 points (0.16%) to close at 45,636.90.
• S&P 500 up by 20.46 points (0.32%), ending at 6,501.86.
• The Nasdaq Composite was trading higher by 115.02 points (0.53%), finishing at 21,705.16.

Crude Oil Prices

• Brent crude slumped by 0.73% to $68.12/barrel
• US West Texas Intermediate (WTI) crude was trading 0.70% lower at $64.15/barrel

Overnight Major Global Events Driving Sentiment

1. India IIP Growth: India’s industrial output grew at a 4-month high of 3.5% in July, driven by strong manufacturing performance. The Index of Industrial Production (IIP) had risen 5% in July last year. For April–July this fiscal, growth slowed to 2.3%, compared with 5.4% in the same period last year. Output had expanded only 1.5% in June.
2. US GDP: The US economy expanded faster than expected in Q2, with GDP rising at a 3.3% annualized pace versus an earlier estimate of 3.0%. Economists had projected a revision to 3.1%. In contrast, GDP had contracted 0.5% in Q1, marking the first decline in three years.
3. US Jobless Claims: Jobless claims in the US fell last week, with initial applications for state unemployment benefits dropping by 5,000 to 229,000 (seasonally adjusted) for the week ending August 23. 
4. US Federal Reserve: Fed Governor Christopher Waller said he supports a 25-basis-point rate cut at the September 16–17 FOMC meeting and expects more cuts ahead to move policy closer to a neutral stance. “Based on what I know today, I would support a 25 basis point cut,” he told the Economic Club of Miami.

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