Gift Nifty hints at a muted start as global signals remain mixed; US job growth slows, services sector contracts, and crude dips while gold prices rise on safe-haven demand.
June-4, 2025: The Indian stock market is poised for a flat to cautious start on Thursday as global cues remain mixed. A combination of soft US economic data, rising gold prices, and volatile crude oil trends suggest a muted trading sentiment for domestic indices.
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Key Global Cues Shaping Market Sentiment:
1. Gift Nifty Indicates Flat Start
Gift Nifty is trading around 24,731, barely 2 points above the previous close of Nifty futures, signaling a subdued opening for the Sensex and Nifty 50.
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2. Asian Markets Mixed
Asia opened on a mixed note. While South Korea’s Kospi gained 0.75% and Kosdaq 0.28%, Japan’s Nikkei 225 slipped 0.39%, and Topix fell 0.63%. Hong Kong’s Hang Seng futures indicated a flat start.
3. Wall Street Ends Mixed
Weak US data led to a cautious tone on Wall Street:
- Dow Jones slipped 0.22%
- S&P 500 ended nearly flat (+0.01%)
- Nasdaq gained 0.32%
Treasury yields fell, reflecting investor concern over a weakening economic recovery.
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4. US Employment Slows Sharply
According to the ADP National Employment Report, private payrolls rose by only 37,000 in May—the lowest since March 2023—far below expectations of 110,000. April figures were also revised downward.
5. US Services Sector Contracts
The US Services PMI fell below the 50 threshold for the first time in a year, dropping to 49.9 in May from 51.6 in April. This signals contraction in the sector, raising fresh concerns over the US economy’s momentum.
6. Crude Oil Prices Drop
Crude declined after US gasoline and diesel inventories rose, and Saudi Arabia slashed July prices for Asian buyers.
- Brent fell 0.25% to $64.70/barrel
- WTI dipped 0.41% to $62.59/barrel
7. Gold Prices Rise
Investors turned to gold as a safe haven, reacting to weak US data.
- Spot gold climbed to $3,377.79/oz (+0.1%)
- US gold futures rose to $3,401.20/oz (+0.1%)
Domestic Market Recap – June 4, 2025
Indian markets snapped a three-day losing streak on Wednesday:
- Sensex gained 260.74 points to close at 80,998.25
- Nifty 50 rose 77.70 points to settle at 24,620.20
Ajit Mishra of Religare Broking noted that stability in banking stocks and a cool-off in India VIX contributed to the bounce, but cautioned against premature optimism ahead of the weekly expiry.
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Indian stock market, Sensex, Nifty 50, Gift Nifty, Wall Street, US jobs data, US PMI, crude oil prices, gold prices, Asian markets, stock market opening