The benchmark indices Sensex and Nifty 50 are likely to begin Friday’s session on a positive note, supported by mixed signals from global markets. Asian equities mostly advanced, while Wall Street closed flat overnight after the US House narrowly approved President Donald Trump’s tax bill, intensifying concerns over the growing national debt.

On Thursday, Indian equities closed in the red, pressured by escalating geopolitical tensions, increasing worries about US fiscal health, and concerns over the high valuations of domestic stocks.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex stumbled by 644.64 points (-0.79%) to close at 80,951.99
• Nifty 50 moved down by 203.75 points (-0.82%) to settle at 24,609.70

Gift Nifty

Gift Nifty was trading near 24,690, 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 Thursday with minimal movement after a volatile session following the House of Representatives’ approval of President Donald Trump’s tax and spending bill:

• Dow Jones Industrial Average slipped by 1.35 points to close at 41,859.09.
• S&P 500 declined by 2.60 points (0.04%), ending at 5,842.01.
• Nasdaq Composite rose 53.09 points (0.28%), finishing at 18,925.74.

Gold Prices

The price of gold price increased as the dollar weakened, and gold emerged appeals as a safe haven: 

• Spot gold increased by 0.2% to $3,299.79/oz 
• US gold futures gained by 0.2% to $3,299.60

Crude Oil Prices

Crude oil prices moved lower and were on track for their first weekly drop in three weeks, as another substantial output boost by OPEC added downward pressure.

• Brent crude slumped by 0.42% to $64.17/barrel
• US West Texas Intermediate (WTI) crude: -0.52% to $60.88/barrel

Major Global Events Driving Sentiment

1. US Jobless Claims: New unemployment claims in the US declined slightly last week. For the week ending May 17, initial jobless claims dropped by 2,000 to a seasonally adjusted 227,000, according to the Labor Department. Economists surveyed by Reuters had anticipated a figure of 230,000.
2. US Treasury Yields: Yields on 30-year US Treasury bonds surged to their highest in 19 months before retreating on Thursday, as investor concerns persisted about the country’s fiscal health and demand for government debt. The 30-year yield slipped by 3.7 basis points to 5.0521% late Thursday. Meanwhile, the benchmark 10-year yield dipped to 4.551% after peaking at 4.629% earlier in the session—its highest since February 12.
3. Japan Inflation: Japan’s core inflation climbed at its fastest pace in April of over two years. The core Consumer Price Index (CPI), which excludes fresh food but includes energy, rose 3.5% year-on-year—above market expectations of 3.4% and up from March’s 3.2% increase.
4. Sensex Rebalancing: Trent (a Tata Group company) and Bharat Electronics (a state-owned enterprise) are set to join the 30-stock Sensex index, replacing Nestle India and IndusInd Bank. The reshuffle will be effective from the start of trading on June 23, according to a BSE announcement.
5. India GDP Forecast: Morgan Stanley has slightly revised its projection for India’s GDP growth, now expecting a 6.2% year-on-year expansion in FY26 (up from 6.1%) and 6.5% in FY27 (up from 6.3%). The upgrade reflects improved global trade prospects following reduced tensions between the US and China.