Gift Nifty slips below previous close; global cues from escalating West Asia conflict, U.S. Fed decision, and gold-silver rally drive investor caution.
June 18, 2025 | Indian stock markets are likely to open on a subdued note Wednesday, as global uncertainty deepens amid rising geopolitical tensions in the Middle East and anticipation over the U.S. Federal Reserve’s interest rate decision. Gift Nifty was trading around the 24,834 level—nearly 29 points below the previous Nifty futures close—signaling a weak start.
On Tuesday, both Sensex and Nifty 50 ended in the red as traders booked profits in heavyweights like HDFC Bank, Reliance Industries, and Bajaj Finance. Sensex declined by 213 points (0.26%) to close at 81,583.30, while Nifty 50 dropped 93 points (0.37%) to finish at 24,853.40. Except for the IT sector, all major indices closed lower, with pharma, metals, and real estate taking the biggest hits.
Ajit Mishra, SVP of Research at Religare Broking, noted that ongoing global volatility, in the absence of significant domestic cues, would continue to drive investor behavior. He advised a stock-specific strategy with prudent risk management.
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7 Key Global Cues That May Influence Indian Markets Today
1. Asian Markets Slide:
Markets across Asia fell on Wednesday, dampened by the growing Israel-Iran conflict. Japan’s Nikkei dropped 0.15%, South Korea’s Kospi lost 0.44%, and Hong Kong’s Hang Seng futures hinted at a softer start.
2. Gift Nifty Signals Weak Opening:
Gift Nifty hovered at 24,834, reflecting a 29-point discount to Nifty futures—suggesting bearish sentiment at market open.
3. Wall Street Ends Lower:
All major U.S. indices fell Tuesday. The Dow lost 299.29 points (0.70%), S&P 500 fell 0.84%, and the Nasdaq dipped 0.91% ahead of the Federal Reserve’s interest rate decision.
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4. Israel-Iran War Escalation:
The intensifying conflict has prompted the U.S. to ramp up its military presence. President Trump met his national security team amid rising diplomatic stakes and regional uncertainty.
5. Crude Oil Prices Rise:
Brent crude gained 19 cents to $76.64, and WTI rose 23 cents to $75.07, on fears that the Middle East conflict could disrupt supply chains.
6. Gold Hits New Highs:
Gold prices surged as investors turned to safe-haven assets. Spot gold rose 0.2% to $3,390.59/oz, while silver reached a 13-year high. U.S. gold futures, however, ended 0.3% lower at $3,406.90/oz due to a stronger dollar.
7. Dollar Strengthens:
The U.S. dollar recovered against the yen following cautious consumer data and ahead of the Fed’s interest rate announcement, reflecting growing concerns around inflation and trade.
With global headwinds continuing and no major domestic triggers on the horizon, Indian markets are expected to remain volatile. Investors are advised to watch developments in the Middle East closely, while also preparing for a potentially market-moving Fed policy announcement later in the day.
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