The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday, following a rally in global markets as investors cheered hopes of a US-Iran peace deal which may finally materialise after US President Donald Trump canceled planned strikes against Iran.
Asian markets surged, while the US stock market ended sharply higher overnight, with all three major indexes registering their biggest daily percentage gains since April 8.
On Thursday, the ended lower as tensions flared up in the Middle East, dampening hopes of any near-term resolution to the war.
The Sensex fell 150.63 points, or 0.20%, to close at 73,832.55, while the Nifty 50 settled 53.35 points, or 0.23%, lower at 23,161.60.
“The market continues to witness selling pressure on every rise; however, rotational buying in select heavyweight stocks is helping contain the pace of the decline. Given the prevailing uncertainty and lack of strong directional cues, we continue to advocate a cautious approach with a focus on stock-specific opportunities,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Friday, following overnight rally on Wall Street, on hopes of US-Iran peace deal. Japan’s Nikkei 225 rallied 3.4% while the Topix gained 1.8%. South Korea’s Kospi jumped 7.01% at open, while the Kosdaq surged 3.25%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 23,487 level, a premium of nearly 287 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
US stock market ended with strong gains on Thursday, after President Donald Trump said he canceled planned strikes against Iran.
The Dow Jones Industrial Average rallied 929.97 points, or 1.86%, to 50,848.75, while the S&P 500 jumped 127.31 points, or 1.75%, to 7,394.30. The Nasdaq Composite closed 640.16 points, or 2.54%, higher at 25,809.66.
Nvidia stock price surged 2.22%, AMD shares spiked 7.97%, Intel shares jumped 9.27%, Micron Technology share price rallied 11.66%, Apple stock price gained 1.39%, Microsoft shares fell 1.77%, Amazon share price rose 1.47%, and Tesla stock price advanced 4.60%.
US-Iran Peace Deal
President Donald Trump said the as soon as this weekend that would reopen the Strait of Hormuz to shipping, but Iran countered that it had not reached a final decision on an agreement.
US Producer Prices
US producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years. The Producer Price Index for final demand advanced 1.1% last month after a downwardly revised 1.1% surge in April. Economists polled by Reuters had forecast the PPI climbing 0.7% after a previously reported 1.4% jump in April. In the 12 months through May, the PPI increased 6.5%, the biggest rise since November 2022.
ECB Rate Hike
The European Central Bank raised interest rates for the first time in nearly three years. The ECB lifted its deposit rate a quarter point to 2.25%, becoming the first major central bank to tighten monetary policy in response to the energy shock unleashed by the US-Iran war.
India GDP Growth
India will remain the world’s fastest-growing major economy, expanding at 6.6% in fiscal year 2026-27, a sharp moderation from 7.7% in the previous year, the World Bank said in its report on Global Economic Prospects.
Crude Oil Prices
Crude oil prices extended losses after US President Donald Trump canceled plans to strike Iran. Brent futures fell 1.3% to $89.17 a barrel, while US West Texas Intermediate (WTI) crude was 1.4% lower at $86.48. On a weekly basis, Brent declined 4.2%, while WTI dropped 4.4%.
Gold Rate Today
Gold prices fell and were on track for a weekly loss amid inflation concerns and potential US Federal Reserve interest rate hikes. Spot gold price declined 0.3% to $4,200.82 per ounce, and was set for a weekly loss of 2.8%. US gold futures for August delivery rose 2.6% to $4,222.10.
Dollar
The dollar found its footing after sliding to its weakest in a week, Reuters reported. Against the yen, the US currency rose 0.1% to 160.07 yen. The euro last bought $1.1576, while the British pound was flat at $1.3414.
(With inputs from Agencies)