India’s benchmark indexes are set to open higher on Friday, as a US tariff reprieve lifted sentiment, even as global trade uncertainty continues to linger.
Gift Nifty futures were trading at 22,933.5 as of 8:20 a.m. IST, indicating a 2.5% rise from the Nifty 50’s Wednesday close of 22,399.15.
Indian markets were closed on Thursday for a local holiday.
Wall Street rallied on Wednesday after US President Donald Trump temporarily lowered some recently imposed tariffs, while raising duties on China.
Global markets followed suit on Thursday.
However, Wall Street closed lower overnight on concerns over the broader economic impact of the trade war.
This prompted a shift to safe-haven assets, propelling gold prices to an all-time high.
Oil prices mirrored equity markets, initially climbing after the tariff pause announcement but surrendering gains later on demand concerns with an escalation in US-China trade tensions.
Analysts noted that while the tariff pause offers short-term relief, heightened policy unpredictability has increased market volatility.
India wants to move quickly on a trade deal with the US, a government official said after Trump’s decision to pause the hefty reciprocal tariffs.
Pranay Aggarwal, CEO of Stoxkart, said that although sentiment has improved, the abrupt change in tariff policies has introduced further volatility into the markets.
Indian shares rise on bargain buying as Asia rebounds on tariff talk hopes
The volatility index has jumped 55.8% this week to 21.43, set for highest weekly rise since March 2020.
Shares of Tata Consultancy Services, India’s largest IT services firm, will be in focus on Friday after it reported weaker-than-expected quarterly earnings and cited US tariff disruptions impacting client confidence.
The IT sector, heavily reliant on the US market, remains under pressure amid ongoing economic uncertainty.
Foreign institutional investors offloaded Indian equities for the eighth consecutive session on Wednesday, taking their total net sales to $16.6 billion in 2025 so far.