2 min readNew DelhiUpdated: Jul 3, 2026 09:24 AM IST
Indian markets opened on a firm note on Friday, supported by a stronger rupee and improved global sentiment after weaker-than-expected US jobs data reduced expectations of aggressive interest rate hikes by the US Federal Reserve.
The rupee opened 18 paise higher at 95.21 against the US dollar, compared with its previous close of 95.39.
Equity benchmarks also started the day in the green. The Nifty 50 opened above the 24,300 mark, while the Sensex gained around 480 points in early trade despite mixed global cues.
Earlier, GIFT Nifty futures had signalled a positive start, rising 150 points to 24,414 as of 7:43 am IST.
Domestic sentiment has been aided by sustained institutional buying and easing crude oil prices. Domestic institutional investors (DIIs) remained net buyers for an eighth consecutive session on Thursday, helping the Nifty 50 and Sensex gain 1.3 per cent over the previous two sessions.
Foreign portfolio investors (FPIs), however, continued to offload Indian equities, selling shares worth Rs 3.12 billion on Thursday, according to provisional data. FPIs have sold a record $29.46 billion worth of Indian stocks so far this year.
Global markets took cues from a softer US labour market report released overnight. Data showed US job growth slowed sharply in June, while payroll figures for the previous two months were revised lower, signalling a cooling economy.
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Following the report, traders lowered expectations of a September rate hike by the Federal Reserve. Market-implied odds of a hike fell to around 53 per cent from nearly 75 per cent before the data release.
In Asia, Japan’s Nikkei 225 rose 0.74 per cent to 69,243.68 by the midday break, although it remained on track for a marginal weekly decline. Other regional markets traded mixed as investors weighed signs of slowing US growth against the prospect of a less hawkish Federal Reserve.
On Wall Street, the technology-heavy Nasdaq closed lower overnight after the payrolls report showed job creation missed expectations by 57,000, reinforcing hopes that US interest rates may remain lower for longer.
The combination of a softer dollar, easing Fed concerns and continued domestic institutional support helped Indian markets begin the day on a positive note.
