Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to see a muted opening on Friday, amid mixed cues from global markets.
Asian markets traded mostly higher, while the US stock market was closed, and US stock futures dropped on cautiousness over the escalating Israel-Iran war.
On Thursday, the Indian stock market ended with minor losses, with the benchmark Nifty 50 slipping below 24,800 level.
The Sensex fell 82.79 points, or 0.10%, to close at 81,361.87, while the Nifty 50 settled 18.80 points, or 0.08%, lower at 24,793.25.
“The strength in the benchmark index does not reflect the underlying market tone, as we are witnessing gradual profit booking across sectors and in the broader market. With geopolitical tensions driving crude prices higher, further deterioration is likely if crude makes a sustained move above the $80 mark. We reiterate our cautious view and advise closely monitoring positions until we see further clarity,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly higher on Friday after China data and as investors assessed escalating Israel-Iran tensions.
Japan’s Nikkei 225 rose 0.13%, while the Topix index was flat. South Korea’s Kospi index gained 0.51%, while the Kosdaq rose 0.41%. Hong Kong’s Hang Seng index futures indicated a weaker open.
Gift Nifty Today
Gift Nifty was trading around 24,793 level, a discount of nearly 10 points from the Nifty futures’ previous close, indicating a muted start for the Indian stock market indices.
Wall Street
US stock market was closed on Thursday for the Juneteenth holiday. However, US stock futures traded lower ahead of Friday’s session. Dow Jones Industrial Average futures fell 154 points, or 0.3%, Nasdaq 100 futures declined 0.2%, while S&P 500 futures fell 0.2%.
Israel-Iran War
US President Donald Trump will decide in the next two weeks whether the US will get involved in the Israel-Iran air war, the White House said. Meanwhile, the Middle East conflict intensified as Israel bombed Iran’s nuclear sites, while Iran fired missile and drone strikes on Israel, including an overnight attack on an Israeli hospital.
People’s Bank of China
China’s central bank kept its benchmark interest rates unchanged Friday. The People’s Bank of China held the 1-year loan prime rate at 3.0% and 5-year LPR at 3.5%. Last month, China lowered LPRs for the first time since October.
Japan Inflation
Japan’s core inflation rate accelerated to 3.7% in May. The data, which excludes volatile fresh food prices, was up from a 3.5% year-on-year (YoY) rise logged in April.
Crude Oil Prices
Crude oil prices fell, but were on track to rise for the third straight week amid Israel-Iran conflict. Brent crude futures fell 1.89% to $77.36 a barrel. On a weekly basis, it was up 3.9%. The US West Texas Intermediate crude for July was up 1.14% to $76.00. The more liquid WTI for August rose 0.7% to $74.
Gold Prices
Gold prices were steady, with geopolitical tensions escalating in the Middle East, while investors remained wary of possible US involvement. Spot gold price was flat at $3,367.60 an ounce. Bullion was down 1.9% so far this week. US gold futures were stable at $3,384.20.
(With inputs from Reuters)
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