January 17, 2025: The Indian stock market is poised for a lower opening on Friday, influenced by weak global cues and a subdued start indicated by Gift Nifty. The Gift Nifty was trading at 23,322, reflecting a discount of nearly 55 points from the previous close of Nifty futures.
Asian markets traded lower, with Japan's Nikkei 225 down 0.21%, Topix falling 0.48%, and South Korea's Kospi remaining flat. Hong Kong's Hang Seng index also indicated a weaker opening. The US markets closed lower, driven by declines in tech stocks; the Dow Jones Industrial Average fell 68.42 points (0.16%), the S&P 500 dropped 12.57 points (0.21%), and the Nasdaq Composite saw a steeper decline of 172.94 points (0.89%). Key tech stocks such as Apple, Nvidia, and Tesla declined by 4.04%, 1.92%, and 3.36%, respectively, although Morgan Stanley shares rallied 4.03%.
In corporate earnings, Reliance Industries reported a consolidated net profit of ₹18,540 crore for Q3 FY25, marking a 7.4% year-on-year growth, with revenue increasing by 6.7% YoY to ₹2.40 lakh crore. Infosys posted a 4.6% rise in net profit for Q3 FY25 at ₹6,806 crore and raised its FY25 revenue growth guidance to 4.5%-5%. However, Infosys ADR fell 5.77% to $21.57 in the US market, suggesting a potential lower opening in India.
Federal Reserve Governor Christopher Waller indicated that easing inflation could allow for earlier rate cuts, which may impact global markets. Retail sales grew at a slower pace in December, increasing by 0.4% from November, while jobless claims unexpectedly rose to 217,000 applications last week.
Crude oil prices continued to rise for the fourth consecutive week, with Brent crude gaining 0.18% to $81.44 per barrel and WTI crude futures up 0.34% at $78.95. The US Dollar Index fell 0.05% to 108.97, and the dollar dropped 0.81% against the yen.
Nifty remains below its 200-DMA at 23,963, with key support at 23,000. Market sentiment will depend on upcoming catalysts, including the FOMC meeting and Delhi Assembly elections. Despite a three-day winning streak, Indian markets may face pressure today due to global uncertainties and mixed corporate earnings, particularly from Reliance and Infosys.