Indian stock market: Key domestic indices – Sensex and Nifty 50 – are likely to open higher on Thursday despite ongoing U.S. President Donald Trump’s tariff row.
Asian markets traded mix, meanwhile, US stock market closed on a higher note, with Nasdaq ending in green.
On Wednesday, the Indian stock market snapped its three-day winning streak, ended the day in red. Sensex was down 176 points, or 0.21 per cent to close at 83,536.08, meanwhile, Nifty 50 settled with a loss of 46 points, or 0.18 per cent, at 25,476.10.
“Markets traded in a volatile but in a narrow range and ended marginally lower, extending the ongoing consolidation phase. After an initial dip, the Nifty attempted to recover in the first half; however, a sharp decline in select heavyweights during the final hours derailed the recovery and dragged the index lower. Eventually, the Nifty settled at 25,476.10, down by 0.18%. While the tariff-related concerns linger, the focus now shifts to the earnings season, with IT major, TCS, scheduled to announce its results on Thursday, July 10. Additionally, the weekly expiry could add to the choppiness. Amid all this, we maintain our bullish stance and recommend continuing with a “buy on dips” strategy, with a strong emphasis on stock selection,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian markets
Asian markets saw a mixed start on Thursday after U.S. President Donald Trump announced a 50% tariff on Brazilian imports effective August 1.
Japan’s Nikkei 225 dropped 0.45%, and the Topix slipped 0.54%. On the other hand, South Korea’s Kospi inched up 0.24%, while the tech-heavy Kosdaq gained 0.44%. Australia’s S&P/ASX 200 also advanced, rising 0.51%.
Gift Nifty today
Gift Nifty was trading around 25,568 level, nearly 38 points up from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
Wall Street indices closed higher on Wednesday, with the Nasdaq outperforming as Nvidia briefly touched a $4 trillion market cap. Investor sentiment was also lifted by the Federal Reserve’s meeting minutes, which suggested that inflation from former President Donald Trump’s tariffs may not hinder potential interest rate cuts this year.
The Dow Jones Industrial Average gained 217.54 points, or 0.49%, to settle at 44,458.30. The S&P 500 rose by 37.74 points, or 0.61%, to close at 6,263.26, while the Nasdaq Composite advanced 192.87 points, or 0.95%, ending the session at 20,611.34.
Trump Tariffs
U.S. President Donald Trump on Wednesday warned of imposing a steep 50% tariff on Brazil starting August 1, as stated in a letter addressed to Brazilian President Luiz Inácio Lula da Silva.
Several countries received tariff notifications on Wednesday, including the Philippines, Sri Lanka, Moldova, Brunei, Algeria, Libya, and Iraq, with duties reaching up to 30% on exports to the U.S. These new tariffs are set to take effect on August 1, subject to ongoing negotiations.
Compared to the announcements made in early April, the proposed tariff rates on imports from Sri Lanka, Moldova, Iraq, and Libya have been reduced, while those on goods from the Philippines and Brunei have increased. The tariff rate on Algerian exports remains unchanged at 30%.
Fed minutes
At their June meeting, Federal Reserve officials were divided on how quickly to lower interest rates, with some expressing concerns about inflation driven by tariffs, while others pointed to weakening labor markets and underlying economic resilience.
According to minutes from the June 17-18 meeting released on Wednesday, most policymakers preferred a cautious, wait-and-see approach regarding future rate decisions. The Federal Open Market Committee (FOMC) ultimately voted unanimously to keep the benchmark interest rate steady at 4.25%-4.5%, a level maintained since December 2024.
US Dollar
The U.S. dollar continued to retreat from its two-week high against major currencies on Thursday, as President Donald Trump’s latest tariff threats had limited impact on global markets—except in Brazil, where the real tumbled as much as 2.8% overnight due to a proposed 50% tariff.
Adding to the dollar’s weakness was a steep drop in U.S. Treasury yields after a strong demand for 10-year notes in Wednesday’s auction. This helped ease concerns surrounding the earlier “Sell America” trend, which had led to simultaneous sell-offs in U.S. Treasuries, the dollar, and Wall Street stocks.
Gold Prices
Gold prices inched higher on Wednesday as investors kept a close eye on ongoing trade talks between the U.S. and its partners, though a stronger dollar limited further gains.
Spot gold increased by 0.3% to $3,310.26 per ounce as of 2:07 p.m. ET (1807 GMT), after touching its lowest point since June 30 earlier in the session. Meanwhile, U.S. gold futures closed 0.1% higher at $3,321.
Crude Oil Prices
Oil prices fell on Thursday after new tariff announcements by U.S. President Donald Trump raised concerns among market participants about a potential slowdown in global economic growth and reduced demand for oil.
By 0052 GMT, Brent crude futures had declined by 22 cents, or 0.31%, to $69.97 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 27 cents, or 0.39%, to $68.11 per barrel.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
