The Indian stock market is poised for a mildly positive start on Thursday, with Gift Nifty trading around the 25,567 level, about 20 points above the previous close of Nifty futures. This signals a slightly upbeat sentiment among traders.
On Wednesday, benchmark indices ended lower, pressured by sell-offs in select heavyweight stocks. The Sensex fell 287.60 points (0.34%) to 83,409.69, while the Nifty 50 declined 88.40 points (0.35%) to 25,453.40.
Ajit Mishra, SVP – Research at Religare Broking Ltd., noted that while global markets remain strong, Nifty's recent consolidation indicates investor caution, with traders awaiting new catalysts. He recommends staying positive but being selective with stocks, especially in sectors showing relative strength.
1. Asian Markets Mixed
Asian equities showed mixed performance on Thursday as investors awaited further details on the US-Vietnam trade agreement.
Japan’s Nikkei 225 dipped 0.15%
Topix slipped 0.21%
South Korea’s Kospi rose 0.77%, and Kosdaq gained 0.5%
Hang Seng futures indicated a weak start
2. Gift Nifty Signals Slightly Positive Opening
Gift Nifty was trading around 25,567, nearly 20 points higher than the Nifty futures’ previous close, suggesting a modestly optimistic start for Indian equities.
3. Wall Street Closes Higher
US markets ended mostly higher, with the S&P 500 and Nasdaq reaching record highs, driven by gains in tech stocks and the US-Vietnam trade pact.
Dow Jones fell slightly by 10.52 points (0.02%) to 44,484.42
S&P 500 rose 29.41 points (0.47%) to 6,227.42
Nasdaq Composite surged 190.24 points (0.94%) to 20,393.13
Key stock movements:
Tesla +4.97%
Apple +2.22%
Nvidia +2.58%
Intel -4.25%
Centene plunged -40%
4. US-Vietnam Trade Deal Announced
President Donald Trump revealed a new trade deal with Vietnam that reduces US tariffs on Vietnamese goods to 20%, down from the previously threatened 46%. Additionally, US products will enter Vietnam duty-free, easing trade tensions.
5. Weak US Jobs Data
US private payrolls saw their first drop in over two years, with a decline of 33,000 jobs in June, according to the ADP National Employment Report. This contrasts with May's revised increase of 29,000 and economists' expectations of a 95,000-job gain.
6. Japan’s Service Sector Expands
Japan's service industry showed slightly stronger growth in June. The au Jibun Bank Japan Services PMI rose to 51.7 from 51.0 in May, beating the flash estimate of 51.5 and marking a third straight month of expansion.
7. Crude Oil Prices Ease
Oil prices dipped due to concerns about weak US demand after a surprise build in inventories.
Brent crude down 0.35% to $68.87/barrel
WTI crude down 0.36% to $67.21/barrel
8. Gold Prices Fall
Gold prices declined as trade tensions eased following the US-Vietnam deal.
Spot gold down 0.3% to $3,345.57/oz
US gold futures down 0.1% to $3,356.60/oz
These developments are expected to shape the tone for Indian equity markets today, with a cautious yet slightly positive outlook driven by global cues.
