The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday, tracking a rally in the overnight global markets as easing concerns over a wider US-Iran conflict boost investor sentiment. Both countries have continued technical-level talks despite their recent exchange of military strikes.

Asian markets rallied, while the US stock market closed higher overnight as gains in semiconductor stocks lifted optimism across the technology sector.

Investors drove the Indian stock market higher on Thursday through short-covering, while attention shifted toward first-quarter earnings and key domestic macroeconomic trends.

Domestic Market Recap

On Thursday, Indian indices ended green:

• Sensex gained by 238.22 points (0.31%) to close at 76,741.82.
• Nifty 50 moved up by 80.75 points (0.34%) to settle at 23,962.80

Gift Nifty

Gift Nifty was trading near 24,104, around 105 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Thursday as a strong rally in semiconductor stocks boosted investor sentiment and lifted the major indices.

• The Dow Jones Industrial Average gained by 139.02 points (0.27%) to close at 52,487.41.
• S&P 500 was up by 60.93 points (0.81%), ending at 7.543.64.
• The Nasdaq Composite was higher by 336.24 points (1.30%), finishing at 26,206.89.

Crude Oil Prices

• Brent crude slumped by 0.09% to $76.23/barrel
• US West Texas Intermediate (WTI) crude was trading 0.24% lower at $71.91/barrel

Overnight Major Global Events Driving Sentiment

1. US-Iran War: The US launched fresh strikes against Iran early on Thursday, prompting Tehran to retaliate by targeting Washington’s regional allies. The latest exchange of attacks threatened the interim agreement aimed at ending the conflict in the Middle East. Despite two days of hostilities, a US official confirmed that Washington continues to hold technical-level talks with Tehran.
2. US Jobless Claims: Fewer Americans filed new unemployment benefit claims last week, signaling continued resilience in the US labor market. Initial jobless claims fell by 2,000 to a seasonally adjusted 215,000 for the week ended July 4, beating Reuters’ economists’ forecast of 218,000 claims.
3. Japan Inflation: Japan’s wholesale inflation accelerated in June as producer prices rose 7.1% year-on-year, according to Reuters. The increase exceeded the market expectation of 6.8% and followed an upwardly revised 6.6% rise recorded in May.

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