Indian markets are likely to begin Friday on a positive note, driven by overnight gains on Wall Street and favorable trends in Asian markets. On Thursday, domestic indices closed in the red, impacted by escalating tensions in the Russia-Ukraine conflict, nuclear concerns, and a sharp fall in Adani group stocks after allegations of bribery and fraud surfaced in the US. Additional pressure came from foreign institutional investors (FIIs), who sold over ₹5,300 crore worth of equities on November 21.

Optimism today may stem from a report suggesting India’s economy is well-positioned to weather potential global trade disruptions between the US and China in 2025. The report emphasizes India’s robust long-term growth prospects, despite global uncertainties. Traders may also take heart from RBI Governor Shaktikanta Das’ statement that stable inflation is critical for sustained growth and investment-friendly conditions.

However, caution could persist due to rising crude oil prices following Russia's hypersonic missile launch into Ukraine, intensifying geopolitical tensions. Additionally, upcoming data on India’s Manufacturing, Composite, and Services PMI for November, along with developments in Adani stocks and NTPC Green Energy’s IPO, will be closely watched.

There is expected activity in aviation stocks, with projections indicating Indian airlines will add about 600 aircraft over the next five years. Telecom stocks may also draw attention following TRAI’s latest subscriber data. Meanwhile, electric vehicle (EV) stocks could see reactions as FICCI has called for a second phase of the production-linked incentive (PLI) scheme tailored for startups and smaller players.

In global markets, Wall Street ended higher on Thursday, buoyed by Bitcoin nearing the $100,000 mark despite subdued forecasts from Nvidia. Asian markets are trading in the green, with Japan’s October CPI data showing a slight decline to 2.3% from 2.5% in September.

Back home, Indian benchmarks saw a sharp decline on Thursday, with the Sensex falling 422.59 points (0.54%) to 77,155.79, and the Nifty dropping 168.60 points (0.72%) to 23,349.90. Concerns over geopolitical tensions, weak corporate earnings, and persistent FII outflows weighed on sentiment. However, improved employment data from the EPFO and a report predicting a significant rise in services exports by 2030 offer glimmers of hope for the domestic economy.