Indian Stock Market: 8 Overnight Triggers That Set the Stage — Gift Nifty Surge, Powell’s Testimony, Weak Dollar Fuel Optimism
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:
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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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%.
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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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.
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.
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.
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.
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.
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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Indian stock market, Sensex today, Nifty 50, Gift Nifty, Jerome Powell testimony, US dollar index, Israel-Iran ceasefire, crude oil prices, Asian markets, Fed rate cut, Nvidia stock, Indian equity outlook
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