US stock market to Nikkei: Here’s world equity heatmap to know before the opening of Indian stock market today

The Indian stock market indices are expected to trade higher on Friday, following a rally in global markets amid improving risk sentiment. The trends on Gift Nifty also signal a positive start for the frontline indices, Nifty 50 and Sensex today.

Gift Nifty was trading around 24,129 level, a premium of nearly 130 points from the Nifty futures’ previous close.

Global risk sentiment improved as concerns over the US-Iran war eased, as they continued technical-level talks despite the recent exchange of strikes. A strong overnight rally in US semiconductor stocks also lifted optimism across the technology sector, providing positive cues for Asian equities.

The trends in global equity markets remain upbeat. Here’s a look at how global markets have performed:

Asian markets traded higher, led by a rally in semiconductor stocks on renewed optimism over AI-driven demand.

Japan’s Nikkei 225 gained 2.02%, and the Topix rose 0.77%. South Korea’s Kospi rallied 3.74%, and the Kosdaq Index jumped 5.33%. Hong Kong’s Hang Seng Index advanced 0.45%, while mainland China’s CSI 300 gained 0.33%.

“Despite the upbeat start, investors remain alert to developments in the Strait of Hormuz, where any further escalation could quickly alter market sentiment,” said Ponmudi R, CEO - Enrich Money.

US stock market ended with decent gains, fuelled by a rally in chip stocks. The Dow Jones Industrial Average rose 0.27% to 52,487.41, while the S&P 500 gained 0.81% to end the session at 7,543.66. The Nasdaq closed 1.30% higher at 26,206.89.

The rally was driven by a broad-based rebound in semiconductor stocks, with the sector’s benchmark ETF gaining more than 2%, as investors looked ahead to South Korean chipmaker SK Hynix’s highly anticipated Nasdaq debut.

European markets recovered, with the pan-European STOXX 600 rising around 0.8% as investors assessed the evolving geopolitical situation in the Middle East. Major continental indices ended broadly higher, with Germany’s DAX and France’s CAC 40 each gaining around 0.9%, while London’s FTSE 100 slipped marginally by about 0.2%.

“The recovery was supported by easing crude oil prices after reports suggested that Iran had called for renewed diplomatic talks, helping to alleviate immediate concerns over potential supply disruptions following the latest US-Iran war escalation,” said Ponmudi R.

Nevertheless, oil prices remained above levels seen before this week’s tensions, and with the broader conflict still unresolved, the improvement in risk appetite appeared more like a temporary respite than a sustained shift in sentiment, he added.

Nifty 50 continues to exhibit a cautious near-term technical structure after failing to sustain above its immediate resistance zone.

According to Ponmudi R, immediate support for Nifty 50 is placed in the 23,800 – 23,900 zone, while resistance is seen around 24,200 – 24,300. He believes a sustained move above this range could pave the way for a recovery towards the 24,600 level.

“However, with geopolitical tensions in the Middle East remaining fluid, investors are likely to treat the recent rebound with caution rather than view it as a definitive trend reversal. Crude oil prices and further developments in the region will remain key drivers of market sentiment throughout the session,” said Ponmudi R.