On Thursday, June 26, the Nifty 50 and Sensex are expected to continue their northward journey, helping sentiments is the fact that the tech-heavy Nasdaq Composite has marked a new four-month closing high.
As of 7:31 AM, the GIFT Nifty was trading near the 25,296 mark, up by 35 points from its previous close, indicating a likely positive opening for the Indian markets.
However, when assessing the overall news flow, the sentiment appears evenly balanced with a slight tilt towards the positive.
Positive Catalyst: The ongoing Israel-Iran ceasefire continues to push oil prices lower.
Negative Catalyst: U.S. Federal Reserve Chair Jerome Powell maintains a cautious stance, signalling that the Fed is not yet ready to begin cutting interest rates due to potential inflationary pressures from tariffs.
Asian peers traded mixed, while the U.S. stock market ended mostly flat overnight, with the Nasdaq closing higher.
With the news flow remaining evenly balanced, cues from Asian peers are mixed, and U.S. stocks ended the day on a flat note, well off their highs. With the June series F&O expiry today, a volatile day is expected for the Indian stock markets.
Regarding the institutional flow, the DIIs in Indian equities have remained net buyers for the past 3 trading sessions.
On Wednesday, June 25, Foreign Institutional Investors (FIIs) were net sellers, having sold equities worth ₹2,427.74 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹2,372.96 crore during the same session.
U.S. President Donald Trump announced that the United States is planning to hold talks with Iran next week, though he expressed uncertainty about the importance of reaching a formal nuclear deal. “We’re going to have discussions with them next week,” he stated, without providing further specifics. He added, “We might sign an agreement, but honestly, I’m not sure it’s even that essential.”
After the ceasefire between Israel and Iran, Indian equity markets continued their upward momentum for another session. The Nifty 50 climbed by 200 points to close at 25,244, while the BSE Sensex surged 700 points to settle at 82,755. Meanwhile, the Bank Nifty also advanced, gaining 159 points to end the day at 56,621.
The Asian peers opened on a mixed note on Thursday. Japan’s Nikkei 225 rose by 0.4%, while the Topix index posted a modest gain of 0.19%. In South Korea, the Kospi and the Kosdaq indices remained largely unchanged.
The U.S. stock market closed on a mixed note Wednesday, putting a break on its recent two-day winning streak. Investors remained cautious as the delicate ceasefire between Israel and Iran held steady, and market participants closely monitored the second day of Federal Reserve Chair Jerome Powell's testimony before Congress.
On the performance front, the Dow Jones Industrial Average fell by 106.59 points, or 0.25%, ending at 42,982.43. The S&P 500 finished nearly flat, slipping just 0.02 points to 6,092.16. In contrast, the Nasdaq Composite gained 61.02 points, or 0.31%, to close at 19,973.55.
In May, sales of new single-family homes in the U.S. declined more sharply than analysts had anticipated. The seasonally adjusted annual rate fell by 13.7% to 623,000 units. Additionally, April’s sales figures were revised downward from 743,000 to 722,000 units. New home sales account for roughly 15% of total home sales in the U.S.
Crude oil prices edged higher in early trading on Thursday. Brent crude moved up by 0.26% to reach $85.09 per barrel, while U.S. WTI crude recorded a slight gain of 0.13%, trading at $81.76 per barrel.
The dollar index sank to its lowest since early 2022 at 97.491 against its rivals.
Disclaimer: The article is for informational purposes only and not investment advice.
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