The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, following mixed global market cues, as the initial euphoria over a two-week fragile US-Iran ceasefire faded amid reports of breaching of the terms of the ceasefire agreement.
Asian markets traded lower, while the US stock market ended sharply higher overnight, with the Dow Jones registering its largest single-session percentage gain in one year.
On Wednesday, the Indian stock market ended with strong gains buoyed by the US-Iran ceasefire deal and after the RBI policy announcement.
The jumped 2,946.32 points, or 3.95%, to close at 77,562.90, while the Nifty 50 settled 873.70 points, or 3.78%, higher at 23,997.35.
“While the sharp rally is encouraging, its sustainability will depend on continued follow-through buying and stability in crude oil prices and global cues. Traders may focus on stock-specific opportunities across sectors, with a preference for rate-sensitive segments, while maintaining prudent position sizing amid elevated volatility,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Thursday, amid doubts over the two-week US-Iran ceasefire deal. Japan’s Nikkei 225 fell 0.59%, while the Topix dropped 0.42%. South Korea’s Kospi declined 0.90% and the Kosdaq fell 0.74%.
Gift Nifty Today
Gift Nifty was trading around 23,940 level, a discount of nearly 117 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended sharply higher on Wednesday after the two-week ceasefire agreement between the United States and Iran lifted investor sentiment.
The rallied 1,326.33 points, or 2.85%, to 47,910.79, while the S&P 500 jumped 165.98 points, or 2.51%, to 6,782.83. The Nasdaq Composite closed 617.15 points, or 2.80%, higher at 22,635.00.
Nvidia stock price gained 2.23%, AMD shares jumped 4.64%, Amazon share price surged 3.50%, Apple stock price advanced 2.13%, while Tesla stock price fell 0.98%. gained 3.8%, Southwest Airlines and United Airlines spiked 6.7% and 7.9%, respectively.
Carnival shares jumped 11.2%, Norwegian Cruise Line stock rallied 7.6%, and Levi Strauss share price surged 10.7%.
US-Iran Ceasefire
The White House announced the US would hold direct talks with Iran and Vice President JD Vance would lead the US delegation to Islamabad. The first round of talks will take place Saturday morning local time.
However, sporadic fighting continued in the Middle East, including Iranian strikes on Gulf states, and the Strait of Hormuz remained largely blocked. , prompting threats of retaliation from Iran.
Dollar
The dollar steadied after sinking to a one-month low. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.03% to 99.09. Euro fell 0.07% to $1.1654, while Sterling eased 0.04% to $1.3387. The Japanese yen weakened 0.06% to 158.7 per dollar.
Gold Rate Today
Gold prices were steady, as investors stayed on the sidelines awaiting clearer signals on the US–Iran ceasefire talks. Spot gold price was little changed at $4,715.42 per ounce, while US gold futures for June delivery fell 0.8% to $4,739.20. Spot silver price fell 0.4% to $73.83 per ounce.
Crude Oil Prices
Crude oil prices rose amid doubts that the US-Iran ceasefire will hold and as the Strait of Hormuz remains restricted. Brent crude futures gained 2.73% to $97.34 a barrel, while US West Texas Intermediate (WTI) crude rallied 3.17% to $97.40 a barrel.
(With inputs from Agencies)