Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a cautious note Thursday, following mixed cues from global markets.
Asian markets traded mixed, while the US stock market ended lower overnight after the US inflation data.
On Wednesday, the Indian stock market ended with modest gains, with the benchmark Nifty 50 closing above the 25,100 level.
The Sensex gained 123.42 points, or 0.15%, to close at 82,515.14, while the Nifty 50 settled 37.15 points, or 0.15%, higher at 25,141.40.
“A fresh trigger is needed for the Nifty to decisively surpass the 25,200 hurdles; otherwise, the ongoing consolidation may continue. We recommend maintaining a stock-specific approach and focusing on prudent trade management, especially considering the overbought conditions in several midcap and small cap stocks,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asia markets traded mixed as investors assessed the US-China trade deal. Japan’s Nikkei 225 fell 0.10%, while the Topix rose 0.12%. South Korea’s Kospi gained 0.34%, and the Kosdaq was flat. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty Today
Gift Nifty was trading around 25,191 level, a discount of nearly 20 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 amid Middle East tensions, and as investors awaited more details on China-US trade talks.
The Dow Jones Industrial Average ended essentially flat at 42,865.77, the S&P 500 dropped 0.27% to end at 6,022.24, while the Nasdaq closed 0.50% lower at 19,615.88.
Amazon shares declined 2%, Nvidia share price fell 0.8%, while Tesla stock price rose 0.1%. GitLab shares plunged almost 11% and GameStop stock price dropped 5.3%.
US Inflation
US consumer prices increased less than expected in May. The Consumer Price Index (CPI) increased 0.1% last month after rising 0.2% in April. In the 12 months through May, the CPI advanced 2.4% after gaining 2.3% in April. Economists polled by Reuters had forecast the CPI climbing 0.2% last month and increasing 2.5% YoY.
US-China Trade Deal
US-China trade deal is “done,” President Donald Trump said, hours after negotiators from Washington and Beijing agreed on a framework to get a trade truce back on track. “We are getting a total of 55% tariffs, China is getting 10%,” Trump said.
Iran-Iraq Tensions
US President Donald Trump said that US personnel were being moved out of the Middle East because “it could be a dangerous place,” adding that the United States would not allow Iran to have a nuclear weapon, Reuters reported.
Japan Business Sentiment
Japan’s business sentiment worsened in April-June for the first time in five quarters. An index measuring big firms’ business confidence fell to -1.9 in the current quarter, following 2.0 in January-March.
Gold Prices
Gold prices rose as rising Middle East tensions boosted demand for safe-haven assets and after softer-than-expected US inflation data raised hopes of a US Fed rate cut. Spot gold price gained 0.3% to $3,364.10 an ounce, while US gold futures rallied 1.2% to $3,384.40.
Crude Oil Prices
Crude oil prices rose to their highest in more than two months, amid fears of escalating tensions in the Middle East. Brent crude futures gained 0.1% to $69.84 a barrel, while US West Texas Intermediate crude prices added 0.16% to $68.26. Both Brent and WTI surged more than 4% on Wednesday.
Dollar
The dollar fell on heightened expectations of Federal Reserve rate cuts. Against a basket of currencies, the dollar fell to its weakest since April 22 at 98.327. The greenback lost 0.43% against the yen to trade at 143.98 and dropped 0.34% against the Swiss franc to 0.81725. Euro rose to a seven-week high and last bought $1.1525. Sterling was up 0.38% to $1.3588.
(With inputs from Reuters)
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