Indian stock market: 8 key things that changed for market overnight - Gift Nifty, Jerome Powell testimony to weak dollar

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, following mixed cues from global markets as investors remained cautious about the Iran-Israel ceasefire and stability in the Middle East.

Asian markets traded mixed, while the US stock market ended mostly flat overnight, with the Nasdaq closing higher.

On Wednesday, the Indian stock market indices ended with strong gains, extending rally to the second consecutive session, with the benchmark Nifty 50 closing above 25,200 level.

The Sensex surged 700.40 points, or 0.85%, to close at 82,755.51, while the Nifty 50 settled 200.40 points, or 0.80%, higher at 25,244.75.

“The recent market resilience despite mixed global cues reflects underlying strength, although heightened volatility continues to keep traders cautious. Notably, the Nifty has surpassed the 25,200 mark just ahead of the June monthly expiry. It will be crucial to see whether it can sustain above this level, especially given the divergent trends across sectors,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Amidst this backdrop, he maintains a positive outlook and continues to advocate a “buy on dips” approach, with a strong emphasis on stock selection.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Thursday, as investors continued to weigh the ongoing ceasefire between Israel and Iran. Japan’s Nikkei 225 gained 0.4% and the Topix rose 0.19%. South Korea’s Kospi and the Kosdaq were flat. Hong Kong’s Hang Seng index futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 25,290 level, a premium of nearly 38 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Wednesday, pausing a two-day rally as the fragile Israel-Iran cease fire continued to hold and investors watched over a second day of congressional testimony from Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average declined 106.59 points, or 0.25%, to 42,982.43, while the S&P 500 eased 0.02 points, or 0.00%, to 6,092.16. The Nasdaq Composite closed 61.02 points, or 0.31%, higher at 19,973.55.

Nvidia share price jumped 4.33% to a record high, Tesla stock price fell 3.8%, while Advanced Micro Devices shares rallied 3.59%. FedEx shares fell 3.3%, UPS stock dropped 1.2%, and General Mills shares plunged 5.1%. BlackBerry shares jumped 12.5% and Micron Technology surged more than 5%.

Israel-Iran War

President Donald Trump said the US would hold a meeting with Iran next week but cast doubt on the need for a diplomatic agreement on the country’s nuclear program. “We’re going to talk to them next week,” Trump said without giving more details. “We may sign an agreement. I don’t know, to me, I don’t think it’s that necessary.”

Jerome Powell Testimony

Fed Chair Jerome Powell, in his second straight day of congressional testimony, reiterated to the Senate Banking Committee that the central bank is well-positioned to wait to cut interest rates until the inflationary effects of Trump’s wide-ranging tariffs are better known.

US Home Sales

Sales of new US single-family homes fell more than expected in May. New home sales units dropped 13.7% to a seasonally adjusted annualized rate of 623,000 units last month. The sales pace for April was revised lower to a rate of 722,000 units from the previously reported 743,000 units. Economists polled by Reuters had forecast new home sales, which make up about 15% of US home sales, declining to a rate of 693,000 units.

Crude Oil Prices

Crude oil prices rose, extending gains from the previous day as a larger-than-expected draw in US crude stocks signalled firm demand. Brent crude futures rose 0.18% to $67.80 a barrel, while US West Texas Intermediate (WTI) crude gained 0.32% to $65.13.

Dollar

The dollar index sank to its lowest since early 2022 at 97.491 against its rivals. The euro gained 0.2% to reach $1.1687, its highest since October 2021. Sterling rose 0.2% to $1.3690, its highest since January 2022. The dollar dipped 0.2% on the yen to 144.89.

(With inputs from Reuters)

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