Indian equity benchmarks are set to extend their recent upward trajectory on Friday, buoyed by a broad improvement in global risk sentiment.
The positive outlook is driven by a confluence of softer US labor market data and a notable decline in crude oil prices, which have retreated following reports of progress in peace negotiations between the United States and Iran.
The Gift Nifty, a key pre-market indicator for the Indian market, is trading at a premium, signaling a likely positive start for domestic indices.
This forward indicator has been a reliable barometer for opening sentiment, having previously signaled higher opens on Tuesday and Thursday amid similar global tailwinds.
The current premium suggests that foreign institutional investors and domestic traders are positioning for a continuation of the recent rally.
The easing of geopolitical tensions in the Middle East has been a primary catalyst for the drop in energy prices, reducing inflationary pressures and improving the risk-reward profile for equities.