Global Rally Sets Positive Tone For Indian Markets On Friday; Here's What Experts Suggest

Domestic markets remained closed on Thursday in observance of Shri Mahavir Jayanti, but the international developments are likely to shape investor sentiment when trading resumes

Global equities soared following Trump’s announcement, which offered a three-month relief from reciprocal tariffs for countries that had not retaliated against US trade measures

Source : PTI

Indian benchmark indices are expected to open on a positive note on Friday, supported by a sharp global market rally after US President Donald Trump announced a temporary pause on tariff hikes, excluding China, for 90 days. The move comes as a surprise reversal from the earlier aggressive tariff stance that had roiled global markets.

Domestic markets remained closed on Thursday in observance of Shri Mahavir Jayanti, but the international developments are likely to shape investor sentiment when trading resumes.

Global equities soared following Trump’s announcement, which offered a three-month relief from reciprocal tariffs for countries that had not retaliated against US trade measures. This development brought significant relief to investors worldwide, sparking a broad-based rally.

Asian markets led the charge, with Japan’s Nikkei 225 skyrocketing 9.13 per cent, South Korea’s Kospi advancing 6.60 per cent, Hong Kong’s Hang Seng rising 2.06 per cent, and China’s Shanghai Composite gaining 1.16 per cent.

European indices also reacted strongly, trading significantly higher in response to the tariff reprieve.

On Wall Street, the surge was even more dramatic. The Nasdaq Composite jumped 12.16 per cent, the S&P 500 climbed 9.52 per cent, and the Dow Jones Industrial Average gained 7.87 per cent, marking one of the best single-day performances in years.

Expectations From The Indian Stock Market

With this wave of optimism sweeping global markets, Indian indices are poised to open on a strong footing, reflecting improved risk appetite and investor confidence. Rakeshh Mehta, Chairman, Mehta Equities-Mehta Group, said, “The Trump announcement announcing a 90-day pause is a welcome move which reflected positively in other Asian markets today with a positive 5-8 per cent gap-up. Indian markets too would see a similar kind of 3-5 per cent gap-up opening on Friday, as we believe any negative action against China with a tariff increasing to 125 per cent would eventually benefit India the most.”

Despite temporarily easing tariffs for most nations, US President Donald Trump has warned that duties on Chinese imports will surge to 125 per cent following Beijing’s pledge to retaliate. For other countries, tariffs will revert to a baseline of 10 per cent. The announcement of reciprocal tariffs on around 60 countries, including India, last week triggered heightened fears of a global trade war, weighing heavily on investor sentiment. 

Since April 2, the benchmark BSE Sensex has shed 2,770.29 points (3.61 per cent), while the NSE Nifty has dropped 933.2 points (3.99 per cent). This market downturn has led to a staggering erosion of investor wealth, with market capitalisation falling by Rs 19.15 lakh crore to Rs 393.82 lakh crore.

"Indian markets will open with a sharp gap up on Friday. Nifty implied open is indicating a gap up of around 700 points. Short-covering can take the markets higher. IT stocks which were sharply down during this downturn will bounce back sharply since recession fears have receded. Pharma stocks, which were depressed on fears of tariffs, will rise sharply. Leading largecaps in banking and financials will rally. It is likely to be an across the board buying. FIIs will be forced to turn buyers in India soon since Chinese stocks will continue to be under pressure," noted V K Vijayakumar, Chief Investment Strategist, Geojit Investments.