The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, following a weak trend in the global markets, as flaring conflict in the Middle East continue to weigh on investor sentiment.
Asian markets declined, while US stock market ended lower overnight, as fresh escalation in the US-Iran war kept crude oil prices elevated and stoked inflation worries.
On Wednesday, the Indian stock market declined, resuming its losing run, but ended significantly off the day’s low.
The Sensex fell 303.67 points, or 0.41%, to close at 74,346.17, while the Nifty 50 settled 77.95 points, or 0.33%, lower at 23,405.60.
“The recent declining market highlights the increasing sensitivity of domestic equities to geopolitical developments, with investors closely tracking energy prices, ongoing US-Iran talks, FII flows, movements in the rupee for further direction and the decisions of RBI’s Monetary Policy Committee meeting,” 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 lower on Thursday, following overnight losses on Wall Street, as escalating US-Iran war stoked inflation worries. Japan’s Nikkei 225 declined 1.4%, while the Topix dropped 0.91%. South Korea’s Kospi plunged 2%, but the Kosdaq rallied over 2%. Hong Kong Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,346 level, a discount of nearly 170 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended lower on Wednesday, dragged down by financials and tech stocks, amid escalating tensions in the Middle East.
The Dow Jones Industrial Average declined 620.72 points, or 1.21%, to 50,687.07, while the S&P 500 dropped 56.06 points, or 0.74%, to 7,553.72. The Nasdaq Composite closed 239.92 points, or 0.89%, lower at 26,853.98.
Nvidia stock price plunged 3.62%, AMD shares rallied 4.02%, Microsoft share price shed 3.17%, Apple stock price fell 1.57%, Meta Platforms shares gained 4.24%, Amazon shares dropped 2.53%, and IBM stock tanked 7.17%. Marvell, Intel, Qualcomm and Sandisk advanced between 3.7% and 6.7%.
US-Iran War
Iran’s foreign minister said that “no tangible progress” has been made in negotiations to end the Middle East war as fresh US and Iranian strikes strained a fragile ceasefire. In contrast, US President Donald Trump voiced optimism again, telling reporters at the White House “it could happen…over the weekend.”
Meanwhile, Israel and Lebanon agreed to implement a ceasefire but said it would require a “complete cessation” of fire by Iran-backed Hezbollah.
US Fed Beige Book Survey
Federal Reserve Chairman Kevin Warsh inherits an economy bolstered by an AI investment boom but pinched by rising prices from the Iran war, the US Federal Reserve’ Beige Book survey showed, Reuters reported. Most US regions experienced higher inflation from late April to late May due to energy-related costs tied to the Iran war “with spillovers into shipping, packaging, groceries, and fertilizer,” according to the survey.
US Services PMI
US services sector activity picked up in May. The Institute for Supply Management said its nonmanufacturing purchasing managers index increased to 54.5 last month from 53.6 in April. Economists polled by Reuters had forecast the services PMI rising to 53.8.
FII Selling
On Wednesday, Foreign institutional investors (FIIs) net sold Indian shares worth ₹5,616.56 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹5,740.89 crore, as per provisional data available on the exchanges.
Gold Rate Today
Gold prices gained, supported by lower crude oil prices and a weaker dollar. Spot gold price rose 0.4% to $4,450.16 per ounce, while US gold futures for August delivery gained 0.2% to $4,477.
Crude Oil Prices
Crude oil prices fell after Israel and Lebanon agreed for a ceasefire agreement, raising hopes for a broader deal to end the US-Iran war. Brent futures declined 0.69% to $97.14 a barrel, while US West Texas Intermediate crude prices dropped 0.65% to $95.4.
Dollar
The dollar clung to its recent strength near a two-month high. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was a shade higher at 99.47. The euro stood at $1.1604, and the British pound traded at $1.3424, while the Japanese yen fetched 159.91 per dollar.
(With inputs from Agencies)
