The domestic equity benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, tracking a overnight global market rally and easing geopolitical tensions in the Middle East after Israel and Hamas agreed to a ceasefire to end the Gaza conflict.

Asian markets traded higher, while the US stock market closed mostly in the green, with both the S&P 500 and Nasdaq hitting record highs.

However, on Wednesday, however, the Indian stock market ended lower, as the benchmark indices snapped their four-day winning streak amid profit booking.

Domestic Market Recap

On Wednesday, Indian indices closed in the red:

• Sensex slumped by 153.09 points (0.19%) to close at 81,773.66
• Nifty 50 moved down by 62.15 points (0.25%) to settle at 25,046.15

Gift Nifty

Gift Nifty was trading near 25,150, around 30 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 mostly higher on Wednesday, driven by strong gains in technology stocks, as both the S&P 500 and Nasdaq achieved record closing highs.

• The Dow Jones Industrial Average slumped by 1.20 points (0.00%) to close at 46,601.78.
• S&P 500 up by 39.13 points (0.58%), ending at 6,753.72.
• The Nasdaq Composite was trading higher by 255.02 points (1.12%), finishing at 23,043.38.

Crude Oil Prices

• Brent crude slumped by 0.71% to $65.77/barrel
• US West Texas Intermediate (WTI) crude was trading 0.85% lower at $62.02/barrel

Overnight Major Global Events Driving Sentiment

1. Israel-Hamas Ceasefire: US President Donald Trump announced that Israel and Hamas have agreed to the first phase of his peace plan, which includes a pause in fighting and the release of some hostages and prisoners. According to AFP, the first phase of the ceasefire deal will be signed on Thursday in Egypt, marking a significant step toward ending the conflict in Gaza.
2. US Fed Meeting Minutes: Minutes from the US Federal Reserve’s latest meeting revealed that most committee members supported additional interest rate cuts this year. A majority of officials expressed concern about rising unemployment risks, noting that the threat had increased since the July meeting, while the risk of higher inflation had lessened or remained stable, the minutes stated.

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