Watch for continued caution. Markets tread in the red after US Fed's hawkish comments. Nifty, Sensex saw profit booking after three days of gains. Nifty failed to hold on to 18700. Could see some sentiment weighed down from crude prices, which have gained 3 percent overnight, on the back of weaker US dollar and a jump in refinery runs in China.

Watch for financials under pressure. Bank Nifty saw an over 500 point cut in the index and continued outperformance from broader markets. Midcap index was at record high and now up over 2 percent WTD. Smallcap index marginally outperformed markets yesterday.

Central Bank action continues. The European Central Bank hiked rates by 25 bps and signalled more tightening to fight inflation. The Bank of Japan policy decision is in focus. It is likely to continue keeping rates unchanged and ultra low.

US stocks continue to gain. US markets closed higher in Thursdays trade. They also hit the highest intraday levels since April 2022. Asian stocks were mixed .

FTSE Index changes come into effect from tomorrow's market close. India could receive net inflows of $250-270 million.