The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a steady note on Thursday as investors balance mixed overnight global market cues with concerns over rising crude oil prices amid the ongoing US-Iran conflict in the Middle East.

Asian markets traded sharply lower, while the US stock market closed higher overnight despite continued concerns surrounding the conflict in West Asia.

Investors lifted the Indian stock market to modest gains on Wednesday, supported by positive global market sentiment.

Domestic Market Recap

On Wednesday, Indian indices ended green:

• Sensex gained by 130.49 points (0.17%) to close at 77,185.43.
• Nifty 50 moved up by 26.45 points (0.11%) to settle at 24,078.50

Gift Nifty

Gift Nifty was trading near 24,106, around 39 points higher than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Wednesday as softer-than-expected inflation data boosted investor confidence and strengthened market sentiment.

• The Dow Jones Industrial Average gained by 150.91 points (0.29%) to close at 52,659.18.
• S&P 500 was up by 28.83 points (0.38%), ending at 7.572.42.
• The Nasdaq Composite was higher by 162.22 points (0.62%), finishing at 26,269.23.

Crude Oil Prices

• Brent crude surged by 0.40% to $85.28/barrel
• US West Texas Intermediate (WTI) crude was trading 0.50% higher at $80.02/barrel

Overnight Major Global Events Driving Sentiment

1. US-Iran War: The US launched two new waves of strikes targeting Iranian military assets that it said were being used to threaten ships passing through the Strait of Hormuz. Meanwhile, Iran’s Revolutionary Guards declared that the Strait would remain closed until the US ends its “acts of aggression” and warned that other regional oil export routes could also come under attack.
2. US Producer Prices: US producer prices unexpectedly declined in June, recording their sharpest monthly fall in 14 months. The Producer Price Index (PPI) for final demand dropped 0.3% after a downwardly revised 0.6% increase in May. Economists surveyed by Reuters had expected producer prices to remain unchanged following the previously reported 1.1% rise in May.
3. Bank of Korea Policy: South Korea’s central bank raised its benchmark interest rate to 2.75%, marking its first rate hike in three and a half years, Reuters reported. The Bank of Korea’s seven-member monetary policy board unanimously approved a 25-basis-point increase in the seven-day repurchase rate.

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