Indian shares are poised for a muted opening on Friday, following a week of global equity gains that appear to have lost steam. Investor sentiment is dampened by stalled U.S.-India trade talks and anticipation surrounding the upcoming Q2 GDP data. Despite reaching record highs on Thursday, the Sensex and Nifty indices closed flat, with the rupee slipping against the U.S. dollar amid increased demand for dollars from importers.

The market’s cautious tone is further influenced by foreign investors turning net sellers, offloading shares worth Rs 1,255 crore, while domestic institutional investors countered with net purchases of Rs 3,941 crore. This dynamic highlights the ongoing tug-of-war between foreign and domestic capital flows, which could impact stock performance in the near term.

A key takeaway for market professionals is the potential for interest rate cuts from both the Federal Reserve and the Reserve Bank of India, which may provide some support to equities and help stabilize investor sentiment amid global uncertainties.

Source: nasdaq.com