Indian stocks eye positive start amid lacklustre sentiment

Indian markets are likely to open higher on Friday, with Gift Nifty at 24,260. Investors may remain cautious amid elevated crude oil prices, mixed global cues and geopolitical uncertainties.

The Gift Nifty at 24,260 indicates that Indian markets are likely to open higher on Friday, though investor sentiment is a bit cautious.

Cautious optimism amid uncertainties

According to Ponmudi R, CEO of Enrich Money, Indian equity markets are set for a cautiously optimistic start. However, lingering geopolitical and macroeconomic uncertainties are likely to temper risk appetite, with investors expected to remain selective and prone to booking profits at higher levels. “Crude oil, though off its recent peak, remains at relatively elevated levels, with WTI hovering near the $83–84 per barrel mark. Diplomatic progress between Iran and Oman on managing traffic through the Strait of Hormuz has helped ease some of the acute supply-risk premium that had built into prices in recent weeks,” he said.

Wall Street, Nvidia boost global cues

Global cues are mixed but broadly supportive. Wall Street’s benchmark indices closed largely flat to higher overnight, even as the latest PCE inflation print—the Federal Reserve’s preferred inflation gauge—came in slightly above expectations, leaving the near-term policy outlook uncertain. Sentiment in technology and semiconductor stocks, however, was clearly lifted by Nvidia’s blowout quarterly results, which triggered a broad rally across AI-linked names in the U.S., helping the Nasdaq end about 1.5% higher.

Asian markets are trading mixed this morning, with Japan’s Nikkei notably firmer. At the same time, South Korea’s Kospi remains on the back foot, reflecting the push-and-pull between AI-driven optimism on one side and caution over the interest-rate outlook on the other, he said.

Fed’s Jackson Hole speech in focus

Attention now turns to Fed Chair Kevin Warsh’s first Jackson Hole keynote, the week’s most closely watched macro event. With the Federal Reserve’s preferred inflation gauge coming in slightly above expectations, investors will parse his remarks for fresh clues on the September policy path and the broader interest-rate outlook.

Strait of Hormuz remains key risk

On the geopolitical front, the Strait of Hormuz remains the key variable to watch. Iran and Oman have reportedly reached an initial understanding on managing navigation and traffic through the waterway, and shipping flows have reportedly continued. However, Tehran has cautioned that a durable resolution will require more than a bilateral arrangement with Oman. Until the situation is fully resolved, crude oil prices, the rupee and broader risk sentiment are likely to remain sensitive to fresh headlines from West Asia.

Hitesh Rathi, Technical Analyst -Equity & Derivatives, Angel One, said While the frontline indices remain range-bound for now, a sense of uneasiness and hesitation is beginning to creep into the broader markets, where a bout of profit booking is now becoming increasingly visible. In light of the prevailing conditions, it would be prudent to avoid aggressive overnight positions and remain highly selective in stock selection.

According to Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in, the market witnessed a healthy corrective session after recent gains, with profit booking emerging at higher levels. “As long as key support levels remain intact, the overall trend continues to favour the bulls. Traders and investors may continue to adopt a buy-on-dips approach in fundamentally strong stocks while maintaining disciplined risk management.”

Published on August 28, 2026