The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday, following mixed cues from global markets. According to reports from Livemint, Gift Nifty was trading around 23,690 level, a discount of nearly 10 points from the Nifty futures' previous close, indicating a flat start for the Indian stock market indices. However, India's Sensex climbed 1.1% in early trading, showing resilience despite global uncertainties.
On Thursday, the Indian stock market ended with healthy gains, led by a short covering rally after the recent fall. As reported by Livemint, the Sensex jumped 789.74 points, or 1.06%, to close at 75,398.72, while the Nifty 50 settled 277.00 points, or 1.18%, higher at 23,689.60. The positive momentum continued into Friday's session with India's Sensex climbing 1.1% in early trading.
The second day of high-stakes talks between US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing produced few concrete deals to excite investors. According to Bloomberg, China's blue-chip CSI300 Index was largely flat and the Shanghai Composite Index rose 0.1% by lunch break, with both indexes swinging between gains and losses throughout the morning session. Hong Kong's Hang Seng fell 0.9% amid a risk-off mood as investors' euphoria over tech stocks gave way to inflation fears amid rising wagers of US rate hikes this year. However, the White House said on Thursday that Trump and Xi discussed enhancing US-China economic cooperation, with both sides agreeing the Strait of Hormuz must remain open.
The summit took a concerning turn when President Xi warned President Trump that tensions over Taiwan could lead to direct clashes between the two nations. This warning has significantly cooled investor risk appetite across Asian markets, with Asian equities trading mostly lower on Friday as geopolitical caution overshadowed earlier market momentum. The escalation in tensions represents a shift from the previous focus on trade cooperation to broader geopolitical concerns, sending markets into a more cautious stance.
World markets showed mixed performance as investors closely monitored the Trump-Xi summit outcomes. In early European trading, Britain's FTSE 100 was up 0.3% to 10,351.36, after the UK reported its economy expanded at a faster-than-expected pace of 0.3% in March despite the impact of the war in Iran. France's CAC 40 rose 0.6% to 8,057.64, and Germany's DAX gained 1.4% to 24,462.22. In Asia, Tokyo's Nikkei 225 index fell 1% to 62,654.05, after briefly reaching a fresh intraday record above 63,700, while South Korea's Kospi closed 1.8% higher at 7,981.41, a fresh record boosted by technology stocks on the artificial intelligence boom. Oil prices were mixed, with Brent crude up 0.2% at $105.87 per barrel as the Iran war enters its third month without clear resolution.
