On Friday, June 27, the Nifty 50 and Sensex are expected to open gap up following growing expectations that the U.S. Federal Reserve may cut interest rates sooner than previously anticipated.
As of 7:21 AM, the GIFT Nifty was trading near the 25,718 mark, up by 170 points from its previous close, indicating a likely gap-up opening for the Indian markets.
Asian peers were mostly higher amid a strong handover from the U.S. markets. In overnight trade, both the S&P 500 and Nasdaq were seen within striking distance of their all-time highs. One of the key catalysts for the rally in the U.S. market was White House spokesperson Karoline Leavitt downplaying the importance of the upcoming July tariff deal deadlines that have been weighing on the markets.
“The deadline is not critical,” said Leavitt. “Perhaps it could be extended, but that’s a decision for the president to make.”
For June 27, two sectors are likely to gain investors' attention — IT and Metal. The Nifty IT index could be in the limelight following solid gains in the Nasdaq, while the Metal sector may attract interest after copper jumped 3% overnight.
Back home, following more than five weeks of consolidation, the Nifty 50 and Sensex have now regained upward momentum. Currently, the Nifty 50 and Sensex are approximately 2.7% near to their all-time high, while Nifty Bank has already hit a fresh all-time high.
Regarding institutional flow, the FIIs in Indian equities turned net buyers in the last trading session and the data indicates that their net buying emerged as the highest single-day buying in about 9 months.
On Thursday, June 26, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth ₹12,594.38 crore, the highest since September 20, 2024. Domestic Institutional Investors (DIIs), on the other hand, sold shares totalling ₹195.23 crore during the same session.
Indian stock markets extended their winning streak for the third consecutive session on Thursday, with the Nifty 50 climbing past the 25,500 mark to hit a fresh 9-month high. The Sensex advanced by 1,000.36 points, or 1.21%, to close at 83,755.87, while the Nifty 50 ended the day up by 304.25 points, or 1.21%, at 25,549.
Asian markets traded mostly higher on Friday, tracking the overnight rally on Wall Street.
U.S. markets closed higher on Thursday as a series of economic data bolstered expectations of a potential rate cut by the Federal Reserve. The Dow Jones Industrial Average jumped 404.41 points, or 0.94%, finishing at 43,386.84. The S&P 500 advanced 48.86 points, or 0.80%, to settle at 6,141.02, while the Nasdaq Composite rose by 194.36 points, or 0.97%, ending the day at 20,167.91.
The U.S. economy contracted more than earlier estimates in the first quarter of 2025. The latest figures from the third estimate show a 0.5% annualised decline in GDP, compared to the initial projection of a 0.2% fall. This follows a 2.4% growth rate recorded in the fourth quarter of 2024.
In May, the U.S. goods trade deficit expanded by 11.1% to $96.6 billion as exports took a hit. Goods exports declined by $9.7 billion, falling to $179.2 billion, while imports remained steady at $275.8 billion.
The number of Americans applying for unemployment benefits declined in the week ending June 21. Initial claims dropped by 10,000 to a seasonally adjusted 236,000. This was below economists’ expectations of 245,000.
U.S. manufacturers received significantly more orders for durable goods in May, with bookings rising 16.4% after a revised 6.6% drop in April.
Gold prices declined and were on track to post their second straight weekly loss. Spot gold slipped by 0.4% to $3,314.27 per ounce, while bullion has dropped 1.6% over the course of the week. Meanwhile, U.S. gold futures registered a 0.6% fall, settling at $3,327 per ounce.
The U.S. dollar weakened, hitting its lowest level in over three years due to mounting concerns about the Federal Reserve’s independence. The dollar index fell by nearly 0.43% during the session and is now down over 10% since the start of the year.
Oil prices moved higher during the session, but both global benchmarks were on course to post weekly losses. This trend comes as tensions in the Middle East ease following a ceasefire between Iran and Israel, reducing supply-related fears. Brent crude climbed 0.50% to $68.07 per barrel, while West Texas Intermediate added 0.51% to reach $65.57. However, both were still expected to end the week roughly 12% lower.
Disclaimer: The article is for informational purposes only and not investment advice.
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