Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open lower on Thursday, following mixed cues from global markets, after the US Federal Reserve’s policy and cautiousness over the ongoing Israel-Iran war.
Asian markets traded mixed, while the US stock market saw a muted close overnight after the US Federal Reserve decided to keep interest rates steady, while the Fed Chair Jerome Powell said he expected inflation to pick up meaningfully in the coming months.
On Wednesday, the Indian stock market ended lower, extending fall for the second straight session.
The Sensex dropped 138.64 points, or 0.17%, to close at 81,444.66, while the Nifty 50 settled 41.35 points, or 0.17%, lower at 24,812.05.
“We recommend maintaining a cautious approach until there is more clarity. In the meantime, participants can consider selectively accumulating stocks that are showing relative strength amid the volatility, with a preference for large-cap and stronger mid-cap names,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Thursday after the US Fed policy decision to keep interest rates unchanged, while the ongoing Israel-Iran war continued to dent investor sentiment.
Japan’s Nikkei 225 fell 0.27%, while the Topix declined 0.12%. South Korea’s Kospi gained 0.76% and the Kosdaq rose 0.37%. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty Today
Gift Nifty was trading around 24,746 level, a discount of nearly 80 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Wednesday after the US Federal Reserve policy and Fed Chair Jerome Powell’s speech.
The Dow Jones Industrial Average fell 44.14 points, or 0.10%, to 42,171.66, while the S&P 500 eased 1.85 points, or 0.03%, to 5,980.87. The Nasdaq Composite ended 25.18 points, or 0.13%, higher at 19,546.27.
Nvidia share price gained 0.94%, Tesla stock price rose 1.82%, while Apple shares added 0.48%. Nucor shares surged 3.3%.
US Federal Reserve
The US Federal Reserve decided to keep the benchmark interest rates unchanged at 4.25% to 4.5%. The Chairman Jerome Powell-led Federal Open Market Committee (FOMC) expects to cut the interest rates by 50 basis points (bps), or 0.50%, in 2025. The officials have revised their 2026 outlook to only 25 bps of rate cuts, down from the previously projected 50 basis points.
Israel-Iran War
Iran’s supreme leader Ayatollah Ali Khamenei rejected US calls for surrender in the face of more Israeli strikes and warned that any military involvement by the Americans would cause “irreparable damage to them.” Meanwhile, European diplomats prepared to hold talks with Iran on Friday. Israel’s military said it was carrying out a “series of strikes” around the Iranian capital Tehran and other areas of the country.
SEBI Board Meet Outcome
The Securities and Exchange Board of India’s (SEBI) board decided to simplify rules and ease regulatory compliance for Foreign Portfolio Investors (FPIs) that invest exclusively in Indian government securities (G-Secs). At the board meeting, the regulator also allowed founders of startups to retain stock options after the company goes public. Sebi also approved some state-owned companies to delist from stock exchanges without approval from minority shareholders.
US Jobless Claims
The number of Americans filing new applications for unemployment benefits fell last week. Initial claims for state unemployment benefits dropped 5,000 to a seasonally adjusted 245,000 for the week ended June 14. Economists polled by Reuters had forecast 245,000 claims for the latest week.
Crude Oil Prices
Crude oil prices traded lower after US President Donald Trump gave mixed signals on the country’s potential involvement in the ongoing Israel-Iran conflict. Brent crude futures fell 0.39% to $76.40 a barrel, while US West Texas Intermediate crude prices for July declined 0.37% to $74.86 a barrel.
(With inputs from Reuters)
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