Sensex and Nifty 50 expected to open higher as Gift Nifty rises, Jerome Powell signals patience on rate cuts, and crude prices edge up amid a weakening dollar.
Mumbai | June 26, 2025:
The Indian stock market is poised for a strong start on Thursday, with global cues offering mixed but mostly supportive signals. As geopolitical tensions ease and Federal Reserve Chair Jerome Powell delivers a measured testimony, investors are gearing up for another day of gains on Dalal Street.
Here are 8 key things that changed for the market overnight:
1. Gift Nifty Points to a Positive Opening
Gift Nifty was trading around the 25,290 mark, indicating a 38-point premium over Nifty futures’ previous close. This signals a likely gap-up opening for domestic equity indices, continuing the bullish sentiment seen earlier this week.
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2. US Markets Close Mixed; Nasdaq Gains
Wall Street paused after a two-day rally. While the Dow Jones slipped 106 points, the Nasdaq rose 61 points (0.31%), led by tech gains. Nvidia surged 4.33% to a record high, while AMD rose 3.59%. BlackBerry gained 12.5%, and Micron Technology jumped over 5%. However, Tesla fell 3.8%, and FedEx dropped 3.3%.
3. Powell Reiterates Dovish Tone on Rate Cuts
Fed Chair Jerome Powell, during his second day of testimony, emphasized the central bank’s “wait-and-watch” stance. He said it was too soon to assess the full impact of Trump’s tariff policies on inflation, reinforcing expectations that rate cuts will come later in the year.
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4. Asian Markets Trade Mixed
Asian indices showed muted reactions, as traders digested global political developments. Nikkei 225 gained 0.4%, while Topix rose 0.19%. South Korea’s Kospi and Kosdaq stayed flat, and Hang Seng futures pointed to a softer open amid uncertainty over the Middle East.
5. Israel-Iran Ceasefire Holds; Trump Comments on Iran Talks
The ongoing ceasefire between Israel and Iran held firm overnight, supporting risk-on sentiment globally. Former US President Donald Trump said the US would engage with Iran next week but cast doubts over the need for a nuclear deal, which markets took as a sign of continued diplomacy.
6. Crude Oil Prices Climb Higher
Crude oil prices rose as US inventories showed a bigger-than-expected drawdown, signaling strong demand. Brent crude edged up 0.18% to $67.80, and WTI gained 0.32% to $65.13, which could impact Indian oil importers and inflation outlook.
7. Dollar Weakens Sharply
The US dollar index fell to 97.491, its lowest since early 2022. The euro climbed to $1.1687, its highest since October 2021, while the British pound rose to $1.3690, hitting a peak not seen since January 2022. A weaker dollar often boosts emerging markets like India by attracting foreign flows.
8. US Home Sales Slump Sharply
Sales of new US single-family homes dropped 13.7% in May to an annualized rate of 623,000 units — well below forecasts. The April figures were also revised downward. This weak data is likely to support the Fed’s caution in cutting interest rates too soon.
💹 Market Recap: Wednesday’s Rally
On Wednesday, the Indian markets extended their rally for a second straight session. The Sensex rose 700.40 points (0.85%) to 82,755.51, and the Nifty 50 jumped 200.40 points (0.80%) to settle at 25,244.75. Analysts believe the market’s resilience signals bullish strength, especially with the June F&O expiry around the corner.
Ajit Mishra, SVP at Religare Broking, remains optimistic, advising investors to follow a “buy on dips” strategy while being selective in stock picking amid sectoral divergence.
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