On Wednesday, June 25, the Nifty 50 and Sensex are likely to witness a strong start, following positive cues from global markets. This optimism comes after Iran denied firing missiles at Israel following the ceasefire, and U.S. Federal Reserve Chair Jerome Powell stated in his speech that the U.S. economy remains solid despite elevated uncertainty.
As of 7:29 AM, the GIFT Nifty was trading near the 25,179 mark, up by 101 points from its previous close. This suggests that Indian markets are likely to witness a gap up opening.
Asian markets saw gains today, following a strong performance on Wall Street where all three major U.S. indices closed with gains of over 1%.
Regarding the institutional flow, the DIIs in Indian equities have remained net buyers for the past 2 trading sessions and FIIs emerged as net sellers for the last 2 trading sessions.
On Tuesday, June 24, Foreign Institutional Investors (FIIs) were net sellers, having sold equities worth ₹5,266.01 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹5,209.60 crore during the same session.
Israel and Iran have reached a ceasefire, bringing an end to 12 days of aerial conflict. The escalation saw the United States enter the fray, with President Donald Trump ordering strikes that targeted and damaged critical Iranian nuclear facilities. While both nations indicated a pause in hostilities, Israeli Prime Minister Benjamin Netanyahu hailed the outcome as a “historic victory.” However, a U.S. intelligence assessment suggested that the American intervention only delayed Iran’s nuclear ambitions by a few months.
After opening on a strong note, stock market indices Sensex and Nifty experienced a sharp intraday decline on Tuesday amid reports of ceasefire violation.The Sensex gave up early gains and dropped by 1,118.04 points from the day’s high, hitting a low of 81,900.12. The Nifty also slipped below the 25,050 mark during the session. Despite the volatility, the Sensex ended the day 158 points higher at 82,055.11, while the Nifty 50 closed with a gain of 72 points at 25,044.35.
Stocks in Asia opened on a positive note amid a buoyant handover from Wall Street. Further positive catalysts included the apparent stability of the Israel-Iran truce and balanced comments from Federal Reserve Chair Jerome Powell on the prospects for rate cuts.
U.S. stock markets surged on Tuesday, with major indices posting gains of over 1%, as investors reacted positively to signs of a tentative ceasefire between Israel and Iran. Meanwhile, attention remained focused on Federal Reserve Chair Jerome Powell’s testimony to Congress, which was closely watched for insights into the central bank’s future policy direction. The Dow Jones climbed 1.19%, the S&P 500 advanced 1.11%, and the Nasdaq rose 1.43%.
Federal Reserve Chair Jerome Powell struck a cautious tone in congressional testimony, signaling no urgency to change interest rates but reaffirming openness to a cut if conditions justify it.
Crude oil prices moved higher as markets evaluated the durability of the truce between Iran and Israel. Brent crude climbed by 1.09%, settling at $67.87 per barrel. Meanwhile, U.S. WTI crude advanced by 1.23% to reach $65.16 per barrel.
Gold prices remained steady as the ceasefire between Iran and Israel eased investor interest in safe-haven assets. Spot gold held at $3,326.39 per ounce after touching a two-week low earlier in the week. U.S. gold futures inched up by 0.2%, trading at $3,340 per ounce.
The U.S. dollar faced mild pressure on Wednesday amid positive sentiment surrounding the tentative peace deal between Iran and Israel. The dollar index slipped slightly to 97.91.
Yields on U.S. Treasury notes saw a decline, with both the two-year and 10-year yields reaching their lowest levels in seven weeks. The two-year yield dropped to 3.7870%, marking a six-week low. The benchmark 10-year yield remained largely unchanged at 4.3043%.
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Disclaimer: The article is for informational purposes only and not investment advice.
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