Indian Stocks Seen Getting Higher Open As Asia Rallies After Wall Street Rebound  

Mumbai, July 31: Indian equity benchmarks are likely to open higher on Friday, after a sharp rebound on Wall Street and a broad-based recovery across Asian markets. Gains in technology stocks, led by strong results from major U.S. companies, have improved risk appetite globally. 

Asian Markets Rise, Tech Stocks Lead Recovery 

Asian equities advanced in early trade on Friday, recovering from recent weakness as investors took encouragement from a rebound in U.S. technology stocks and strong corporate earnings. 

South Korea’s Kospi led gains in the region, jumping 13.8%, while Japan’s Nikkei also traded higher, up 4.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 5.1%. 

The recovery in Asian markets came after a volatile stretch for global equities, during which concerns over lofty valuations in the technology sector and the scale of investment required to develop artificial intelligence infrastructure had weighed on investor sentiment. 

The latest gains suggest that investors are once again willing to take on risk, with strong corporate earnings helping offset concerns about stretched valuations and uncertainty over the global interest-rate outlook. 

Wall Street Rebounds On Strong Tech Gains 

U.S. stocks ended sharply higher, with technology shares leading the rebound. 

The S&P 500 gained 1.7%, while the Dow Jones Industrial Average rose 1.2%. The Nasdaq Composite outperformed, climbing 2.8%, as investors bought technology and semiconductor stocks. 

Microsoft shares surged after the company’s latest results and outlook helped ease investor concerns over the enormous capital expenditure required to build out artificial intelligence infrastructure. The company’s performance provided a fresh boost to the broader AI trade and lifted sentiment across the technology sector. 

Fed Concerns, Bond Yields Keep Investors Cautious 

Despite the strong rebound in equities, concerns surrounding the U.S. Federal Reserve’s interest-rate path remain in focus. 

Investors continue to assess the outlook for monetary policy amid uncertainty over inflation and economic growth. Elevated U.S. Treasury yields could also keep global equity valuations under pressure, particularly in rate-sensitive sectors. 

Oil Prices, Geopolitics In Focus 

Crude oil prices remained another key factor for global markets. Oil prices eased despite renewed geopolitical tensions, offering some relief to oil-importing economies such as India. 

Lower crude prices are generally positive for India as they can help contain inflationary pressures, reduce the country’s import bill and support the rupee. However, any escalation in geopolitical tensions that disrupts supply could quickly reverse the trend and increase volatility. 

Indian Markets Likely To Start On Firm Note 

The combination of strong overnight gains on Wall Street and a positive trend across Asian markets points to a firm opening for Indian equities on Friday. 

Positive global risk appetite could lend support to broader market sentiment. 

However, investors may remain cautious ahead of key global monetary-policy signals. 

Overall, global cues suggest that the Sensex and Nifty are likely to begin the session on a positive note. 

Source

• exchanges