The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a positive note on Wednesday, 2 July, following cues in global markets.
Asian markets traded mostly lower, while the US stock market traded flat overnight.
On Wednesday, the Indian stock market witnessed strong buying momentum, followed by mixed global cues and easing crude oil prices.
The benchmark Sensex advanced 444 points, or 0.58%, to end the session at 76,922.64, while the Nifty 50 climbed 140 points, or 0.59%, to settle at 24,005.85.
“Markets started the month on a positive note, gaining nearly half a percent amid mixed cues. After a firm opening, the Nifty gradually edged higher during the first half of the session but failed to decisively surpass Tuesday’s high and traded lacklustre thereafter. Consequently, the index settled at 24,005.85, up 0.59%.
Technically, we continue to maintain our consolidation view on the Nifty until it registers a decisive breakout from the 23,800–24,200 range. In the meantime, we recommend maintaining a stock-specific approach, focusing on relative outperformers across sectors. We maintain our negative stance on IT due to its continued weakness, while opportunities are emerging in banking, realty, auto, pharma, and select industrial names,” said Ajit Mishra – SVP, Research, Religare Broking.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower after a sharp selloff in US chip stocks revived concerns that the AI-led market rally may have run ahead of underlying fundamentals.
The broader MSCI Asia Pacific Index declined 0.9%. South Korea’s Kospi emerged as the worst performer in the region, plunging 5.36% at the open and triggering a five-minute trading halt by the Korean Exchange to contain volatility. The small-cap Kosdaq also fell 3.55%.
Meanwhile, Japan’s Nikkei 225 slipped 0.70%, while the Topix edged up 0.13%. Australia’s benchmark S&P/ASX 200 declined 0.59%.
Gift Nifty today
Gift Nifty was trading around 24,187.5 level, a premium of nearly 95 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.
Wall Street
US stock market ended marginally lower on Wednesday as weakness in technology stocks weighed on sentiment, although gains in Meta Platforms helped cushion losses in the S&P 500 and Nasdaq.
Semiconductor stocks led the decline, with the Philadelphia Semiconductor Index (SOX) tumbling 6.3%, while the technology sector emerged as the worst-performing segment on the S&P 500. Investors remained concerned about elevated valuations and the heavy spending on artificial intelligence by major technology companies.
The Dow Jones Industrial Average slipped 13.96 points, or 0.03%, to close at 52,305.24. The S&P 500 declined 16.13 points, or 0.22%, to 7,483.23, while the Nasdaq Composite dropped 173.69 points, or 0.66%, to end the session at 26,040.03.
Semiconductor stocks
The VanEck Semiconductor ETF (SMH) declined 5.4%, led by steep losses in Micron Technology and Sandisk, which tumbled more than 10% each.
US-Iran Talks
US President Donald Trump on Wednesday said indirect talks with Iran in Qatar were progressing, indicating that diplomatic efforts remained alive despite recent hostilities that had threatened attempts to end the conflict in the Middle East.
Following the discussions, Iran’s Deputy Foreign Minister Kazem Gharibabadi, who headed Tehran’s delegation, said the talks had concluded, with both sides agreeing to establish a communication channel by Thursday to report and document any violations of their initial memorandum of understanding.
Iran had maintained that there would be no direct negotiations in Doha, with the talks instead focusing on a framework aimed at ending the conflict triggered by US-Israeli strikes on Iran in late February.
Gold Rate Today
Gold extended its rebound after remarks by US Federal Reserve Chairman Kevin Warsh eased expectations of an interest rate hike this year to combat inflation.
Bullion traded near $4,050 an ounce after gaining 0.6% on Wednesday, ending a two-day losing streak. Spot gold was up 0.3% at $4,053.57 an ounce, while silver advanced 0.4% to $59.35 an ounce.
Crude Oil Prices
Oil prices declined for a third consecutive session as crude shipments through the Strait of Hormuz increased and signs of progress emerged in indirect negotiations between the US and Iran.
West Texas Intermediate (WTI) traded near $68 a barrel after falling 3% over the previous two sessions, while Brent crude settled below $72 on Wednesday.
The decline in oil prices extended following its weakest quarterly performance since 2020. Prices have remained under pressure as oil flows through the Strait of Hormuz — a critical route linking Persian Gulf producers with global markets — continued uninterrupted despite heightened geopolitical tensions and the exchange of strikes over the weekend.
Dollar
The US dollar strengthened ahead of the closely watched U.S. employment report scheduled for Thursday, but gave up part of its gains after Federal Reserve Chair Kevin Warsh said inflation expectations and inflation risks had moderated in recent weeks.
The Japanese yen, which had earlier weakened to a 40-year low against the dollar, recovered some ground as the greenback retreated.
The dollar index, which tracks the US currency against a basket of major peers, including the yen and the euro, was last trading 0.17% higher at 101.41.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
