Despite mixed cues from global markets, domestic benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday. While US markets ended on a positive note, Asian markets slipped on Thursday after four consecutive sessions of gains.

On Wednesday, Indian equities closed in the green, buoyed by largely positive global trends and signs of easing geopolitical tensions.

Domestic Market Recap

On Tuesday, Indian indices closed in the green:

• Sensex gained by 182 points (0.22%) to close at 81,330.56
• Nifty 50 moved up by 89 points (0.36%) to settle at 24,666.90

Gift Nifty

Gift Nifty was trading near 24,767, around 42 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

US indices moved towards the red for the third consecutive session:

• Dow Jones: 89.37 pts (0.21%) to 42,051.06
• S&P 500: 6.03 pts (0.10%) to 5,892.58
• Nasdaq closed 0.72% higher by 136.72 at 19,146.81

Gold Prices

Gold declined more than 2% over growing optimism around trade developments, causing investors to move away from the gold market.

• Spot gold fell by 2% to $3,181.62/oz, which is the lowest price since 11 April 
• US gold futures slipped by 1.8% to $3,188.30

Crude Oil Prices

Oil prices fell by almost $1 in early Thursday trading, driven by speculation over a potential U.S.-Iran nuclear deal that could boost supply. Adding to oversupply concerns, US crude inventories unexpectedly rose last week.

• Brent crude slumped by -1.3% to $65.21/barrel
• US West Texas Intermediate (WTI) crude: -1.5% to $62.23/barrel

Major Global Events Driving Sentiment

1. US-China Trade Developments: On Wednesday, China announced it would suspend certain non-tariff countermeasures following a weekend agreement with the US to lower tariffs on each other’s goods, signalling further progress in easing their trade tensions. During the recent talks in Switzerland, the world’s two largest economies agreed to a temporary tariff reduction, with the US cutting its rates to 30% and China lowering its tariffs to 10%.
2. US Inflation Update: The US is expected to release wholesale inflation data, retail sales numbers, and Walmart’s earnings later today. Consumer prices in the US rose slightly in April, marking the smallest annual increase in four years. The Consumer Price Index (CPI) inched up by 0.2% after a 0.1% decline in March, the first monthly drop since May 2020. Economists had forecast a 0.3% rise. For the year ending in April, CPI increased by 2.3%, slightly lower than March’s 2.4% gain.

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