Indian equity markets likely to open lower following a global sell-off, with Gift Nifty, US bond yields, and geopolitical concerns setting a cautious tone.
Mumbai, May 22, 2025 – Indian stock market indices Sensex and Nifty 50 are expected to open on a negative note on Thursday, following overnight losses on Wall Street and weak global cues. Despite closing higher on Wednesday, Indian markets face pressure from spiking US Treasury yields, geopolitical tensions, and a softer start on Gift Nifty.
Here are 10 key things that changed for markets overnight:
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1. Gift Nifty Indicates Weak Start
- Gift Nifty was trading around 24,783, nearly 48 points below the Nifty futures’ previous close.
- This signals a muted-to-negative opening for domestic benchmarks.
2. Wall Street Plunge
- The Dow Jones fell 816.80 points (1.91%) to 41,860.44.
- S&P 500 slipped 1.61%, and the Nasdaq dropped 1.41%, logging their biggest single-day fall in a month.
- The slide was driven by concerns over ballooning US debt levels and muted demand at the 20-year bond auction.
3. Asian Markets Trade Lower
- Japan’s Nikkei fell to a two-week low at 37,007.79, weighed by a stronger yen and rising bond yields.
- South Korea’s Kospi and Kosdaq declined 0.59% and 0.69% respectively.
- Hong Kong Hang Seng futures also pointed to a weak open.
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4. Surge in US Bond Yields
- The 10-year US Treasury yield rose to 4.589%.
- 20-year yield hit 5.127%—highest since November 2023.
- The 30-year bond yield rose to 5.0817%, up by 11.5 basis points.
5. Dollar Dips, Yen & Pound Strengthen
- The dollar index fell as the euro rose 0.4% to $1.1334.
- The Japanese yen gained 0.6%, with USD/JPY at 143.62.
- The British pound hit its highest level since February 2022.
6. Bitcoin Hits Record High
- Bitcoin surged 2.7% to a record $109,856.
- The rally was triggered by progress in stablecoin legislation in the US, raising hopes of clear crypto regulations under President Trump.
7. Crude Oil Slips on Inventory Concerns
- Brent crude fell 0.55% to $64.55/barrel.
- WTI crude dropped 0.52% to $61.25/barrel.
- A surprise build-up in US inventories and renewed Iran-US nuclear talks weighed on demand outlook.
8. Gold Prices Edge Higher
- Spot gold rose 0.2% to $3,320.37/ounce.
- US gold futures also gained 0.3% to $3,322.20, driven by dollar weakness and risk aversion.
9. India-US Trade Optimism
- According to PTI, India and the US may announce an interim trade deal before July 8.
- India is seeking full exemption from an additional 26% tariff on domestic exports.
10. Geopolitical Concerns: Israel-Yemen Conflict
- Tensions escalated as Israel intercepted a missile launched from Yemen early Thursday.
- The incident added to global market unease amid ongoing Israel-Iran tensions.
Domestic Snapshot:
- On Wednesday, Sensex closed at 81,596.63 (+410.19 pts), and Nifty 50 at 24,813.45 (+129.55 pts), ending a three-day losing streak.
- However, gains were limited by investor caution ahead of global trade developments and regional conflict concerns.
Conclusion:
With mixed domestic cues and sharp global sell-offs, Indian markets are likely to witness range-bound to negative sentiment in early trade. Traders will keep an eye on bond yield movements, geopolitical headlines, and US economic updates for further direction.
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Indian Stock Market, Sensex Today, Nifty 50, Gift Nifty, Bitcoin Record, Wall Street Crash, US Treasury Yields, Israel Yemen Conflict, India US Trade Deal, Gold Prices, Crude Oil, Global Markets