The ceasefire in West Asia continues to hold, and the United States and Iran are set to resume nuclear talks next week. US President Donald Trump's comment on the possibility of a deal has fuelled some optimism in the markets. However, investor enthusiasm remains relatively subdued.
Asian markets were mixed today, with Japan the only major index showing notable gains. US futures showed marginal movement. Crude oil prices continue to remain low, with Brent hovering near $68 a barrel.
In the derivatives market, Gift Nifty closed at 25,285 on Wednesday night and rose to 25,327 this morning before pulling back. This suggests a strong opening for the Indian market today.
European markets closed lower on Wednesday. NATO’s decision to increase defence spending to five percent of GDP lifted defence stocks. Both the euro and the pound sterling rose sharply in currency markets. A report that Shell is attempting to acquire British Petroleum (BP) pushed BP shares up 10 percent, though Shell denied the report. BP closed with a 1.6 percent gain.
In the US, markets closed mixed on Wednesday. The Dow Jones dropped 0.25 percent, while the Nasdaq rose 0.31 percent. The S&P 500 ended flat. The benchmark index remains within reach of its record high of 6,147.43.
Trump’s remarks on resuming nuclear negotiations with Iran lifted market sentiment.
NVIDIA surged 4.3 percent to a new record high, driven by continued AI-related optimism. The company's market capitalisation reached $3.77 trillion, regaining its position as the world’s most valuable company. Microsoft, in second place, is valued at $3.66 trillion.
The Dow fell 106.59 points (0.25%) to close at 42,982.43. The S&P 500 dipped 0.02 points (0.00%) to 6,092.16, while the Nasdaq gained 61.02 points (0.31%) to end at 19,973.55.
US futures are slightly lower this morning, with the Dow down 0.02 percent, the S&P 500 down 0.03 percent, and the Nasdaq also down 0.03 percent.
In Asia, markets opened mixed today. Japan’s Nikkei rose one percent, while South Korean and Australian markets remained largely unchanged. Hong Kong markets declined, and Chinese indices saw marginal losses.
The continuation of the West Asian ceasefire helped lift Indian equities on Wednesday. Key indices closed near the day’s highs. The Midcap index ended marginally higher, while the Smallcap index rallied 1.5 percent.
The Nifty rose 200.40 points (0.80%) to close at 25,244.75. The Sensex climbed 700.40 points (0.85%) to end at 82,755.51. The Bank Nifty gained 159.25 points (0.28%) to settle at 56,621.15. The Nifty Midcap 100 advanced 259.30 points (0.40%) to 58,881.70, while the Smallcap 100 surged 275.10 points (1.49%) to 18,727.50.
Market breadth remained positive. On the BSE, 2,779 stocks advanced, while 1,262 declined. On the NSE, 2,135 stocks rose and 775 declined. On the NSE, 51 stocks hit 52-week highs, while 23 touched 52-week lows. As many as 106 stocks hit upper circuits, and 45 reached lower circuits.
Foreign institutional investors (FIIs) continued to sell, offloading ₹2,306.10 crore in the cash market on Wednesday. Domestic funds were net buyers to the tune of ₹2,018.14 crore.
Despite failing to breach 25,300, the Nifty managed to close above 25,200 for the first time since October. With supportive technical indicators, a move past 25,300 today could pave the way for a rally towards 25,500–25,600. The Nifty has support at 25,155 and 25,075, with resistance at 25,270 and 25,355.
With calm returning to West Asia, the rush to safe-haven assets like gold has eased. However, gold prices have not declined significantly. Attention now turns to whether the US Federal Reserve will cut interest rates. Market movement will depend on upcoming economic data that could influence the Fed’s decision.
Gold closed with a minor gain at $3,338.30 per ounce on Wednesday after small fluctuations. Prices edged down to $3,336 in early trade today. In Kerala, gold prices dropped ₹200 per sovereign on Wednesday to ₹72,560. Silver rose to $36.28 per ounce, buoyed by growing industrial demand.
In international markets, rubber eased by 0.06 percent to 159.50 cents per kg. Cocoa dropped 3.27 percent to $8,879.28 per tonne. Coffee prices declined by 3.41 percent, while tea prices remained flat. Palm oil rose 1.06 percent.
The US dollar weakened again following the West Asian ceasefire. The dollar index closed at 97.68 on Wednesday and slipped to 97.47 this morning.
In currency markets, the euro rose to $1.1685, and the pound sterling to $1.369. The Japanese yen strengthened to 144.75 per dollar. US 10-year bond prices rose, pushing yields down to 4.273 percent.
The Indian rupee weakened slightly on Wednesday, with the dollar gaining 10 paise to close at ₹86.07. China’s yuan slipped to 7.18 per dollar.
Crude oil prices remained largely unchanged. Brent was at $67.90 per barrel in early trade today. WTI was at $65.24, while Murban crude stood at $68.08. Natural gas prices edged slightly higher.
Cryptocurrencies maintained their upward momentum. Bitcoin climbed to $107,500, while Ether dipped slightly below $2,430.