The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday as investors closely monitor developments surrounding the US-Iran peace deal.
Reports suggest that the US and Iran are working toward a draft agreement to extend their ceasefire for 60 days. However, cautious sentiment persisted after US Vice President said the two nations were “close” to reaching a deal, but “not there yet.”
Asian markets rallied, while the US stock market ended higher overnight, with the S&P 500 and the Nasdaq posting record closing highs.
The for trading on Thursday due to the Bakri Id holiday.
On Wednesday, the ended slightly lower, extending losses for the second consecutive session, amid selling in select heavyweights.
The Sensex declined 141.90 points, or 0.19%, to close at 75,867.80, while the Nifty 50 settled 6.55 points, or 0.03%, lower at 23,907.15.
“While the consolidation phase in the index may continue, we reiterate maintaining a stock-specific approach based on prevailing sectoral trends, while keeping a close check on overnight risk exposure,” 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 on reports that the US and Iran are moving closer to a temporary agreement to halt their three-month conflict. Japan’s Nikkei 225 gained 0.88%, while the Topix rose 0.53%. South Korea’s Kospi jumped 2.68%, while the Kosdaq added 0.25%. Hong Kong’s Hang Seng index futures indicated a flat opening.
Gift Nifty Today
Gift Nifty was trading around 23,881 level, a discount of nearly 116 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Wall Street
US stock market ended higher on Thursday, with the S&P 500 and the Nasdaq posting record closing highs, as reports of the US-Iran peace deal boosted sentiment.
The rose 24.69 points, or 0.05%, to 50,668.97, while the S&P 500 gained 43.27 points, or 0.58%, to 7,563.63. The Nasdaq Composite closed 242.74 points, or 0.91%, higher at 26,917.47.
Nvidia stock price rose 0.78%, AMD shares rallied 4.55%, Microsoft share price gained 3.47%, Apple stock price added 0.53%, while Marvell Technology shares surged 3.09%. Tesla stock price rose 0.40%.
US Inflation
US inflation increased at its fastest pace in three years in April, driven by higher energy prices. The Personal Consumption Expenditures Price Index jumped 3.8% in the 12 months through April, the largest rise since May 2023. PCE inflation advanced by an unrevised 3.5% on a YoY basis in March. The index gained 0.4% on a MoM basis in April after shooting up 0.7% in March.
US-Iran Peace Deal
US and Iranian negotiators edged toward a deal to extend their fragile ceasefire for 60 days, but it awaits President Donald Trump’s approval, AFP reported. Under the proposed deal, shipping through Hormuz would be unrestricted, with no tolls or harassment; Iran would remove all mines within 30 days; and the United States would lift its naval blockade if commercial traffic resumes, according to an Axios report.
US Jobless Claims
The number of Americans filing claims for unemployment benefits increased marginally last week. Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 215,000 for the week ended May 23. Economists polled by Reuters had forecast 211,000 claims for the latest week. Claims have been tucked in a 190,000-230,000 range this year.
Wipro ADR
The US-listed shares of Wipro surged over 18% in Wall Street trading on Thursday, May 28. price jumped 18.54% to $2.430 on NYSE. During the session, Wipro ADR surged over 21%. The rally in Wipro ADR came after the IT major announced its expanded partnership with ServiceNow to implement and scale the impact of agentic AI workflows across core enterprise functions such as IT, HR, procurement, and cybersecurity.
Crude Oil Prices
Crude oil prices fell on hopes for a potential deal to extend the US-Iran ceasefire. Brent crude futures for August declined 0.50% to $92.24 a barrel, while US oil futures dropped 0.71% to $88.27 a barrel. Crude oil prices were down more than 8% for the week.
Gold Rate Today
Gold prices rose as investors assessed reports of a US-Iran ceasefire deal. Spot gold price gained 0.4% to $4,512.79 per ounce. The metal was up about 0.1% for the week so far. US gold futures rose 0.2% to $4,543.10. Spot silver price rallied 0.7% to $76.17 per ounce.
Dollar
The dollar extended its weakness against major currencies and was on track to end the week lower. The dollar index, which measures the greenback against a basket of currencies, was largely flat at 98.997, and on track to end the week 0.3% lower. The euro fetched $1.1653, up 0.03%, while the pound traded flat at $1.3445. The Japanese yen strengthened to 159.27 per dollar.
(With inputs from Agencies)