The equity market benchmark indices, Sensex and Nifty 50, will likely open cautiously on Friday as worries over US tariffs weigh on overnight sentiment, despite strong global cues.

Asian markets traded higher, while US stocks rallied with all three major Wall Street indices closing at record highs.

However, on Thursday, the Indian stock market extended its rally and closed higher after the US Federal Reserve cut benchmark interest rates by 25 bps as expected and signalled two more rate cuts this year.

Domestic Market Recap

On Thursday, Indian indices closed in the green:

• Sensex surged by 320.25 points (0.39%) to close at 83,013.96
• Nifty 50 moved up by 93.35 points (0.37%) to settle at 25,423.60

Gift Nifty

Gift Nifty was trading near 25,472, around 39 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

The US stock market indexes closed at record highs on Thursday, a day after the Federal Reserve delivered a 25-basis-point interest rate cut.

• The Dow Jones Industrial Average gained by 124.10 points (0.27%) to close at 46,142.42.
• S&P 500 up by 31.61 points (0.48%), ending at 6,631.96.
• The Nasdaq Composite was trading higher by 209.40 points (0.94%), finishing at 22,470.73.

Overnight Major Global Events Driving Sentiment

1. India-US Trade Deal: India’s Chief Economic Adviser (CEA) V. Anantha Nageswaran said he expected the tariff dispute with the US to be resolved within two months. Addressing an industry gathering, he added that Washington would likely roll back the additional 25% tariff it imposed on New Delhi for purchasing Russian oil.
2. SEBI on Adani Group: SEBI cleared billionaire Gautam Adani and his group of stock manipulation charges raised by US short-seller Hindenburg Research, ruling that fund transfers between group companies did not violate regulations.
3. US Unemployment Claims: The number of Americans applying for unemployment benefits fell last week. Initial claims for state benefits dropped by 33,000 to a seasonally adjusted 231,000 for the week ending September 13.
4. BoE Monetary Policy: The Bank of England kept interest rates steady at 4% and cast doubt on further cuts this year. The central bank announced it would slow the pace of its quantitative tightening programme, shifting sales away from long-dated gilts. Policymakers voted 7-2 to reduce the annual pace of gilt sales from £100 billion ($136.47 billion) to £70 billion.

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