Indian Shares Seen Tad Higher At Open

Indian shares are seen opening a tad higher on Friday after a recent string of losses. That said, heightened risk aversion due to geopolitical tensions, tariff-related concerns and continued foreign portfolio outflows may lead to volatility as the session progresses.

Benchmark indexes Sensex and Nifty fell around 1 percent each to extend losses for a fourth consecutive session on Thursday after reports emerged that U.S. President Donald Trump has okayed a bipartisan bill that could impose up to 500 percent tariffs on nations that knowingly purchase Russian oil or uranium and “fuel Russian President Vladimir Putin’s war machine”.

Also, the U.S. has pulled out from all major climate-linked global bodies, including India-headquartered International Solar Alliance (ISA), raising concerns the move will have implications for global climate policy, energy security, and international partnerships.

The rupee fell 7 paise to settle at 89.94 against the U.S. dollar despite active intervention by the RBI to bolster the currency.

FIIs net sold shares worth Rs 3,367 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs 3,701 crore, as per provisional data on exchanges.

Asian markets were mostly higher in cautious trade this morning as investors braced for the release of all-important U.S. jobs data as well as a Supreme Court ruling on the legality of President Donald Trump’s sweeping tariffs.

The jobs report will offer additional clues on the Federal Reserve’s path for interest rates, with markets currently pricing in at least two quarter-point cuts in 2026.

The dollar traded higher as the U.S. Senate advanced a resolution aimed at curbing Trump’s ability to take further military action against Venezuela.

In another development, Trump has ordered the purchase of $200 billion in mortgage bonds with the goal of easing housing costs through lower interest rates.

Meanwhile, data showed China’s consumer inflation accelerated at the fastest pace in nearly three years in December, driven mainly by higher food costs.

The producer price index fell 1.9 percent year-on-year in the month, reinforcing expectations for further policy support.

Japanese stocks led regional gains after China said export control on dual-use items to Japan won’t impact civilian use and that it remains committed to the stability and security of global production and supply chains.

Gold was marginally lower around $4,470 an ounce in Asian trade. WTI crude futures extended gains after climbing more than 3 percent overnight on fears of supply disruptions amid prospects of Russia-related sanctions, Trump’s seizure of Russian oil tanker, unrest in Iran, Iraqi nationalization moves, and a drone attack on a Russia-bound oil tanker near Turkey’s coast in the Black Sea.

Overnight, U.S. stocks ended mixed in directionless trade as heavyweight technology and semiconductor stocks came under selling pressure, offsetting gains in the defense sector after President Trump demanded a $500 billion increase in annual defense spending.

In economic news, data showed first-time claims for U.S. unemployment benefits rose moderately last week amid a relatively low number of layoffs at the end of 2025.

The tech-heavy Nasdaq Composite dipped 0.4 percent to end lower for the first time in four sessions while the Dow climbed 0.6 percent and the S&P 500 finished marginally higher.

European stocks also ended mixed on Thursday despite managing to find some support in the closing hour.

The pan European Stoxx 600 slipped 0.2 percent. While the U.K.’s FTSE 100 finished marginally lower, the German DAX inched up marginally and France’s CAC 40 added 0.1 percent.

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