Indian benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday as overnight global markets offered mixed cues and investors remained cautious about the Iran-Israel ceasefire and overall Middle East stability.

Asian markets traded mixed, while the US stock market closed mostly flat overnight, with the Nasdaq ending in the green.

However, on Wednesday, Indian equity indices extended their rally for a second straight session, finishing with strong gains, as the Nifty 50 settled above the 25,200 mark.

Domestic Market Recap

On Wednesday, Indian indices closed in the green:

• Sensex gained by 700.40 points (0.85%) to close at 82,755.51
• Nifty 50 moved up by 200.40 points (0.80%) to settle at 25,244.75

Gift Nifty

Gift Nifty was trading near 25,290, around 38 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stock market closed mixed on Wednesday, taking a breather after a two-day rally, as investors closely monitored the fragile ceasefire between Israel and Iran and awaited further insights from Federal Reserve Chair Jerome Powell during his second day of congressional testimony.

• Dow Jones Industrial Average slumped by 106.59 points (0.25%) points to close at 42,982.43.
• The S&P 500 was trading flat, ending at 6,092.16.
• The Nasdaq Composite was trading higher by 61.02 points (0.31%), finishing at 19,973.55.

Crude Oil Prices

Crude oil prices climbed further, building on the previous day’s gains after a larger-than-anticipated drop in US crude inventories indicated strong demand.

• Brent crude gained by 0.18% to $67.80/barrel
• US West Texas Intermediate (WTI) crude: 0.32% to $65.13/barrel

Overnight Major Global Events Driving Sentiment

1. Jerome Powell Testimony: Federal Reserve Chair Jerome Powell told the Senate Banking Committee on Wednesday that the central bank is prepared to wait before cutting interest rates. He emphasized the need to assess the inflationary impact of former President Donald Trump’s broad tariffs before making any rate decisions.
2. US Home Sales: New home sales in the US dropped sharply in May, falling 13.7% to a seasonally adjusted annual rate of 623,000 units—below economists’ expectations. April’s sales figures were also revised downward to 722,000 units from the earlier estimate of 743,000. Reuters had forecast May’s sales at 693,000 units. New home sales account for roughly 15% of total US home sales.
3. Israel-Iran War: US President Donald Trump said his administration plans to meet with Iranian officials next week but downplayed the urgency of reaching a nuclear agreement. “We’re going to talk to them next week,” Trump said, adding, “We may sign an agreement. I don’t know, to me, I don’t think it’s that necessary.”

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