The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a flat note on Thursday, following mixed global market cues, as optimism over the US-Iran peace deal countered a hawkish US Federal Reserve policy.
Asian markets traded higher, while the US stock market ended lower overnight after the US Fed signalled rate hikes later this year.
On Wednesday, the Indian stock market ended higher for the fourth consecutive session, bolstered by optimism around a US-Iran peace deal and weakening crude oil prices.
The Sensex jumped 347.14 points, or 0.45%, to close at 77,155.62, while the Nifty 50 settled 96.55 points, or 0.40%, higher at 24,085.70.
“As participation broadens across sectors, we continue to favour a stock-specific approach, focusing on relative outperformers while maintaining disciplined risk management and booking profits on rallies due to anticipated event-specific volatility,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Thursday, as the US-Iran peace deal lifted risk-sentiment. Japan’s Nikkei 225 rallied 1.35% to rise above 71,000 for the first time, while the Topix gained 1.27%. South Korea’s Kospi rose 0.89% and the Kosdaq declined 0.5%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 24,083 level, a discount of nearly 11 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.
Wall Street
US stock market ended lower after the US Federal Reserve key interest rate unchanged, but signalled a rate hike later this year.
The Dow Jones Industrial Average fell 507.12 points, or 0.98%, to 51,492.55, while the S&P 500 declined 91.25 points, or 1.21%, to 7,420.10. The Nasdaq Composite closed 354.69 points, or 1.34%, lower at 26,021.66.
Nvidia stock price fell 1.33%, Microsoft shares dropped 3.79%, Amazon share price plunged 3.46%, Alphabet shares shed 2.53%, Apple stock price declined 1.10%, Meta Platforms shares tanked 5.44%, Tesla stock price slipped 2.05%, and SpaceX stock price cracked 4.95%.
US-Iran Peace Deal
The US and Iran released the text of an interim agreement their presidents have signed to end their war on Wednesday, with the US President Donald Trump threatening to resume attacks and kill Iranian officials if they failed to honour their commitments, Reuters reported. Pakistan Prime Minister Shehbaz Sharif confirmed that the agreement, which was signed electronically by both sides, has come into effect “immediately”.
US Fed Policy
The US Federal Reserve, led by the new chief Kevin Warsh, kept interest rates unchanged at the 3.50%-3.75% range. The new quarterly projections showed nine central bank officials expect at least one rate hike by the end of 2026 to combat higher inflation.
US Retail Sales
US retail sales increased more than expected in May. Retail sales jumped 0.9% last month after a downwardly revised 0.4% gain in April. Economists polled by Reuters had forecast retail sales rising 0.5% after a previously reported 0.5% increase in April.
Treasury Yields
Japanese government bonds (JGB) fell after hawkish signals from the US Fed raised prospects of an earlier rate hike by the Bank of Japan. The 10-year JGB yield rose 2 bps to 2.620%, and the five-year yield edged up 0.5 bp to 1.865%. The two-year yield was flat at 1.385%.
US 10-year Treasury yield rose 3 bps to 4.461% and the 2-year yield gained 16 bps to 4.207%, its highest since February 2025.
Crude Oil Prices
Crude oil prices fell after the US and Iran signed an interim agreement that would end the Iran war, reopen the Strait of Hormuz and waive US sanctions on Tehran’s oil. Brent crude futures declined 1.12% to $78.66 a barrel, and US West Texas Intermediate fell 1.28% to $75.81 a barrel.
Gold Rate Today
Gold rose more than 1%, recouping losses from the previous session, as oil prices fell after the signing of the US-Iran peace deal. Spot gold price rose 1.5% to $4,322.41 per ounce after declining 1.7% on Wednesday. US gold futures for August delivery fell 0.9% to $4,343.10. Spot silver price rose 2.2% to $69.51 per ounce, after falling 3% in the previous session.
Dollar
The US dollar clung to a more than two-month high on rising bets of a Fed rate hike this year. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was little changed at 100.31. It surged 0.85% to the strongest level since March 31 in the previous session, Reuters reported. The euro was up at $1.1511 and sterling strengthened to $1.3318. The Japanese yen weakened to as much as 160.760 after hitting its weakest since 2024 overnight.
(With inputs from Agencies)
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