The Indian stock market is likely to open on a cautious note on Friday, following weakness in global markets due to escalating US-China trade tensions. Early trends on Gift Nifty also point to a negative start for the day.

Asian markets traded lower, and the US stock market slipped overnight as concerns over trade disputes between the two largest economies persisted.

Despite the cautious outlook, the Indian market had a strong performance on Thursday, extending its rally for a second consecutive session. Both benchmark indices posted gains of around 1%. The Sensex surged 862.23 points (1.04%) to close at 83,467.66, while the Nifty 50 added 261.75 points (1.03%) to settle at 25,585.30.

“Positive global cues, along with an appreciating rupee and expectations of a pickup in corporate earnings in the coming weeks, supported the rally. However, choppy foreign institutional investor (FII) trends remain a concern, as US-India tariff issues and geopolitical tensions could trigger outflows and weigh on markets,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.