Sensex and Nifty 50 are likely to open lower on Friday on weak overnight global cues weighed on sentiment after Israel launched airstrikes on Iran, stoking fears of a broader Middle East conflict. Asian markets declined, and US stock futures also fell amid escalating geopolitical tensions in the region.

However, on Thursday, the Indian stock market closed sharply lower, with both benchmark indices dropping around 1%.

Domestic Market Recap

On Thursday, Indian indices closed in the red:

• Sensex slumped by 823.16 points (1%) to close at 81,691.98
• Nifty 50 moved down by 253.20 points (1.01%) to settle at 24,888.20

Gift Nifty

Gift Nifty was trading near 24,734, around 203 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

Tech stocks drove the US stock market higher on Thursday. However, US stock futures fell afterwards as worsening tensions in the Middle East dampened investor sentiment. 

• Dow Jones Industrial Average surged by 101.85 points (0.24%) points to close at 42,967.62.
• S&P 500 up by 23.02 points (0.38%), ending at 6,045.26.
• The Nasdaq Composite was trading higher by 46.61 points (0.24%), finishing at 19,662.48.

Crude Oil Prices

• Brent crude surged by 7.67% to $74.68/barrel
• US West Texas Intermediate (WTI) crude: 8%% to $73.48/barrel

Gold Prices

• Spot gold gained by 0.8% to $3,412.29/oz 
• US gold futures up by 1.2% to $3,384.40

Overnight Major Global Events Driving Sentiment

1. India CPI Inflation: India’s retail inflation dropped to a six-year low in May as food prices sharply declined. The Consumer Price Index (CPI) inflation stood at 2.82% year-on-year, easing from 3.16% in April and 4.8% recorded in May last year.
2. Israel-Iran Conflict: Israel launched airstrikes on Iranian nuclear sites to prevent Tehran from advancing its nuclear weapons program. The operation, named “Rising Lion,” also targeted Iranian missile facilities and top commanders. Iranian media confirmed explosions, including one at the country’s main uranium enrichment plant. In response, Israel declared a state of emergency, bracing for potential retaliatory missile and drone attacks from Iran.
3. US Producer Prices: Producer prices in the US rose less than anticipated in May. The Producer Price Index (PPI) for final demand edged up 0.1% after a revised 0.2% decline in April. Economists surveyed by Reuters expected a 0.2% rise following the earlier reported 0.5% drop. On a yearly basis, the PPI increased 2.6% in May, slightly above the 2.5% growth in April.
4. US Jobless Claims: Initial jobless claims in the US remained unchanged at 248,000 for the week ending June 7, staying at elevated levels. This figure matched the previous week’s number and exceeded economists’ forecast of 240,000 claims, as reported by Reuters.

Ready to invest like a pro? Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!