The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a muted note on Thursday, 30 July, as investors assess the US Federal Reserve’s decision to keep interest rates unchanged and ongoing tensions from the overnight US-Iran conflict.

Asian markets traded mixed on Thursday, while the US stock market fell sharply overnight.

Strong buying in banking and IT heavyweight stocks pushed the Indian benchmark indices sharply higher on Wednesday, 29 July, with both the Sensex and Nifty 50 ending the session with significant gains.

Domestic Market Recap

On Wednesday, Indian indices ended in the green:

• Sensex soared by 889 points (1.16%) to close at 77,654.60.
• Nifty 50 moved up by 265 points (1.10%) to settle at 24,250.20

Gift Nifty

Gift Nifty was trading near 24,330, around 19 points lower than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

US stock futures moved higher on Wednesday night as investors assessed the latest earnings from major technology companies and the Federal Reserve’s decision to keep interest rates unchanged.

• The Dow Jones Industrial Average crashed by 1.153.18 points (2.19%) to close at 51,594.14.
• S&P 500 was up by 112.52 points (1.52%), ending at 7.316.15.
• The Nasdaq Composite was lower by 433.97 points (1.74%), finishing at 24,442.94.

Crude Oil Prices

• Brent crude slipped by 1.42% to $89.45/barrel
• US West Texas Intermediate (WTI) crude was trading 0.666% lower at $83.90/barrel

Overnight Major Global Events Driving Sentiment

1. US Fed Meeting Outcome: US Federal Reserve Chair Kevin Warsh led the central bank to keep interest rates unchanged on Thursday, as widely expected. The decision marked the fifth consecutive policy meeting in which the Fed maintained its benchmark rate while officials continued to assess inflation trends and broader economic conditions before making any changes to monetary policy. The Fed announced the decision after concluding its two-day Federal Open Market Committee (FOMC) meeting. The central bank kept the benchmark interest rate in the 3.50%-3.75% range and largely maintained its June projections for inflation, unemployment, and economic growth.
2. US-Iran War: The United States launched fresh strikes against Iran on Wednesday, escalating a conflict that has continued for five months and expanded beyond its main fronts to involve additional countries across the region. US Central Command said American forces carried out the strikes in response to what it described as attempted Iranian attacks on US forces stationed in the Middle East. Several regional developments preceded the latest escalation. British maritime security firm Ambrey reported that a drone struck a US-owned gas storage tanker at Egypt’s Mediterranean port of Damietta. Meanwhile, US and Saudi forces attacked Iran-backed groups in eastern Iraq, while Iran launched missile strikes targeting US troops in Jordan.

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