Sensex and Nifty 50 are likely to open lower on Friday as investors react to mixed overnight global market cues.

Asian markets traded in the red, while Wall Street ended on a mixed note, with the Nasdaq and S&P 500 hitting fresh record highs.

However, on Thursday, heavy selling dragged Indian equities sharply down, pushing the Nifty 50 below the 25,100 mark by the close.

Domestic Market Recap

On Thursday, Indian indices closed in the red:

• Sensex slumped by 542.47 points (0.66%) to close at 82,184.17
• Nifty 50 moved down by 157.80 points (0.63%) to settle at 25,062.10

Gift Nifty

Gift Nifty was trading near 24,980, around 115 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

The US stock market closed on a mixed note, as the S&P 500 and Nasdaq hit record highs, driven by optimism in heavyweight AI stocks following strong Q2 results from Google parent Alphabet.

• Dow Jones Industrial Average slumped by 316.38 points (0.70%) to close at 44,693.91.
• S&P 500 up by 4.44 points (0.07%), ending at 6,363.35.
• The Nasdaq Composite was trading higher by 37.94 points (0.18%), finishing at 21,057.96.

Gold Prices

Gold prices edged higher, supported by a weaker US dollar, though optimism around ongoing trade talks between the US and its trading partners limited further gains. Spot gold rose 0.1% to $3,371.86 per ounce, while US gold futures remained mostly flat at $3,374.80.

Crude Oil Prices

• Brent crude surged by 0.3% to $69.39/barrel
• US West Texas Intermediate (WTI) crude: 0.32% to $66.24/barrel

Overnight Major Global Events Driving Sentiment

1. India-UK FTA: India signed a historic Free Trade Agreement (FTA) with the United Kingdom, aiming to boost bilateral trade by nearly $34 billion annually. The deal allows 99% of Indian exports to enjoy tariff advantages, while making British goods such as whisky, cars, medical devices, and cosmetics more affordable in India through reduced duties and smoother market access.
2. ECB Policy: The European Central Bank (ECB) kept its key interest rate steady at 2%, pausing its year-long easing cycle. Having implemented eight rate cuts since June 2024, the ECB is now awaiting more clarity on Europe’s trade relationship with the US before taking further action.
3. US Jobless Claims: Fewer Americans filed for unemployment benefits last week, signalling ongoing labour market strength. Initial jobless claims fell by 4,000 to a seasonally adjusted 217,000 for the week ending July 19, defying economists’ expectations of 226,000.

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