The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, following weakness in global markets after a stalemate in US-Iran peace talks pushed crude oil prices higher, and the US Federal Reserve delivered a hawkish pause.
Asian markets traded lower, while the US stock market ended mixed after US Fed policy and big tech earnings.
On Wednesday, the Indian stock market retreated sharply from the day’s highs but ended higher.
The Sensex jumped 609.45 points, or 0.79%, to close at 77,496.36, while the Nifty 50 settled 181.95 points, or 0.76%, higher at 24,177.65.
“Markets are likely to remain volatile and event-driven in the near term, with reactions to exit poll outcomes expected to guide sentiment ahead of the final election results next week. At the same time, the ongoing earnings season, elevated crude oil prices, currency movement and developments in US–Iran negotiations will continue to remain key overhangs,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly lower on Thursday, following overnight losses on Wall Street amid rising crude oil prices and US Fed policy. Japan’s Nikkei 225 declined 1.10% and the Topix fell 1.48%. South Korea’s Kospi rose 0.06%, while the Kosdaq dropped 0.25%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 24,185 level, a discount of nearly 67 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended mixed after the US Federal Reserve’s interest-rate decision, and rising crude oil prices.
The Dow Jones Industrial Average declined 280.12 points, or 0.57%, to 48,861.81, while the S&P 500 fell 2.82 points, or 0.04%, to 7,135.98. The Nasdaq Composite closed 9.44 points, or 0.04%, higher at 24,673.24.
Nvidia stock price fell 1.79%, AMD shares jumped 4.30%, Intel share price surged 12.06%, while Tesla stock price eased 0.86%. In extended trading, Alphabet shares surged 7.05%, Amazon share price gained 2.74%, Microsoft stock price rose 0.34%, and Meta shares plunged 7.01%.
US-Iran War
US President Donald Trump told Axios he will not lift a naval blockade of Iran’s ports until he secures a deal with Tehran to address the country’s nuclear program, extending a standoff over the Strait of Hormuz that has caused a global energy crisis, Bloomberg reported.
US Fed Policy
The US Federal Reserve kept the federal funds rate unchanged for the third consecutive meeting at 3.5%–3.75% amid increased risk of inflation rising due to higher global energy prices. In his press conference, Fed Chair Jerome Powell hinted that the impact of higher energy prices on the inflation trajectory could not be assessed at this juncture.
Microsoft Q3 Earnings
Microsoft reported revenue of $82.9 billion, up 18% YoY, while net income rose 23% to $31.8 billion. The company expects revenue for its Azure and other cloud services business to grow between 39% and 40%, in constant currency, in the fiscal fourth quarter. Revenue at the unit rose 40% in the fiscal third quarter. Microsoft forecast Q4 revenue of between $86.7 billion and $87.8 billion.
Alphabet Q1 Earnings
The Google parent Alphabet’s total revenue rose 22% to $109.9 billion in the first quarter, above an estimate of $107.2 billion, according to LSEG data. Revenue at Google Cloud grew 63% to $20 billion, well above analysts’ average estimate of a 50.1% increase. The company raised this year’s capital expenditure forecast to between $180 billion and $190 billion.
Amazon Q1 Earnings
Amazon’s Q1 revenue increased 17% to $181.5 billion, while operating income rose to about $23.9 billion compared with $18.4 billion a year earlier. Revenue at Amazon Web Services (AWS) jumped 28% to $37.6 billion. Amazon projected current-quarter operating income between $20 billion and $24 billion, and revenue between $194 billion and $199 billion
Meta Q1 Earnings
Meta reported first-quarter net income of $26.8 billion, while its revenue was $56.31 billion, beating the LSEG-compiled analysts’ average estimate of $55.45 billion. It expects second-quarter revenue of $58 billion to $61 billion, largely in line with estimates of $59.5 billion. The Facebook and Instagram parent projected 2026 capital expenditure between $125 billion and $145 billion, compared with its prior forecast of $115 billion to $135 billion.
Samsung Earnings
Samsung Electronics said its quarterly operating profit had jumped 750% YoY to a record 57.2 trillion won ($38.4 billion) on the back of strong sales of chips crucial for artificial intelligence. Net profit was 47.1 trillion won, and sales hit 133.9 trillion won, an all-time quarterly high.
US Treasury Yields
The hawkish shift of the US Fed sent treasury yields sharply higher. The 2-year note yield rose to 3.928%, while the benchmark US 10-year Treasury yields climbed to 4.421% — both their highest levels since March 27.
Japanese Bond Yields
Benchmark Japanese government bond (JGB) yields rose to a 29-year high after the US Fed signalled growing concerns about inflation, while oil prices jumped. The benchmark 10-year JGB yield rose 4 basis points (bps) to 2.500%, the highest since June 1997. The five-year yield rose 3 bps to 1.885%.
Crude Oil Prices
Crude oil prices extended gains as talks to end the US-Iran war have deadlocked. Brent crude futures for July contract rose 0.85% to $111.38 a barrel, after gaining 5.8% in the previous session. US West Texas Intermediate futures for June gained 0.59% to $107.51 a barrel, after climbing 7% in the previous session.
Gold Rate Today
Gold prices rebounded from a one-month low hit the day before, helped by a softer US dollar. Spot gold price rose 0.6% to $4,566.73 per ounce, after falling to its lowest level since March 31 in the previous session. US gold futures for June delivery rose 0.4% to $4,578.50.
Dollar
The dollar hovered near its highest in more than two weeks. The dollar index was steady at 98.852 following a 0.3% gain on Wednesday, hovering near the highest level since April 13, Reuters reported. The euro stood at $1.1689 and sterling traded at $1.34877, both up roughly 0.1%. The Japanese yen fell 0.1% to 160.16 per dollar.
(With inputs from Agencies)
