A fresh wave of selling in global semiconductor stocks dragged most Asian equity markets sharply lower on Thursday, raising concerns over the broader technology sector. While India has limited direct exposure to semiconductor manufacturing, weakness in global chip stocks could weigh on domestic technology and electronics-related companies.
Crude oil prices remained firm near $85 a barrel despite continuing tensions in West Asia, while US index futures traded lower after Wall Street ended Wednesday on a positive note.
Gift Nifty indicates a mildly positive opening for Indian equities. Gift Nifty settled at 24,106.50 on Wednesday night and briefly touched 24,122 in early Thursday trade before easing, indicating a flat-to-positive opening for the domestic market.
India's southwest monsoon rainfall deficit widened to 22.8 percent as of July 15, according to the India Meteorological Department.
Kerala's rainfall deficit increased to 32 percent. Bihar, Punjab, Gujarat, Karnataka and Andhra Pradesh are also reporting rainfall shortfalls exceeding 20 percent. More than half of the country's geographical area is currently facing rainfall deficiency above 20 percent.
US producer price inflation came in below expectations, easing concerns over inflation and supporting equities.
Major technology stocks, led by Nvidia, gained, although semiconductor shares continued to witness heavy selling.
The Dow Jones Industrial Average rose 150.37 points (0.29 percent) to close at 52,658.64. The S&P 500 gained 28.81 points (0.38 percent) to 7,572.40, while the Nasdaq Composite climbed 162.22 points (0.62 percent) to finish at 26,269.23.
US index futures, however, slipped in early Thursday trade, with Dow futures down 18 points, S&P 500 futures lower by 5 points and Nasdaq futures losing 85 points.
Asian markets opened sharply lower as the sell-off in semiconductor stocks intensified.
South Korea's Kospi plunged nearly 7 percent, with SK Hynix falling around 10 percent. Japan's Nikkei dropped about 3 percent. Taiwan's market declined around 2 percent, while Shanghai lost over 1 percent. Australia's market was marginally lower. Hong Kong was the only major market trading in positive territory.
Indian equities swung between gains and losses on Wednesday before ending with modest gains despite geopolitical concerns and rupee weakness.
Metal, IT, realty and FMCG stocks came under pressure, while banking stocks supported the market.
Foreign institutional investors remained net sellers, offloading shares worth Rs 735.83 crore in the cash market. Domestic institutional investors bought shares worth Rs 704.93 crore.
Among individual stocks:
Kalyan Jewellers gained 3.46 percent.
CSB Bank rose 3.27 percent on expectations linked to the proposed IDBI Bank transaction.
Fed Fina jumped 7.52 percent after strong June-quarter results.
Ather Energy surged 8.09 percent following expectations of additional capital infusion.
Patanjali Foods slumped 14.73 percent amid institutional selling.
Himadri Specialty Chemicals reported a 26.3 percent rise in net profit on record revenue.
MRPL returned to profit during the June quarter, supported by improved performance at ONGC.
HDFC Life reported stronger-than-expected first-quarter new business premium and margins.
ICICI Prudential Life posted a 14.65 percent increase in premium income and a 27.84 percent rise in net profit.
ICICI Lombard General Insurance reported a 46 percent fall in net profit after increasing provisions for motor third-party claims.
HDB Finance reported a 38.3 percent growth in first-quarter net profit.
Union Bank of India posted a 10.14 percent rise in net interest income and a 29.54 percent increase in net profit.
Gold remained range-bound after softer US inflation data and stable crude oil prices reduced immediate inflation concerns. Spot gold closed at $4,061.40 an ounce on Wednesday before slipping to around $4,045 in early trade on Thursday. In Kerala, 22-carat gold rose by Rs 560 to Rs 1,05,280 per sovereign.
Silver eased to around $57.12 an ounce. Platinum traded near $1,656, palladium at $1,287 and rhodium around $7,600.
Industrial metals traded lower on Wednesday. Copper slipped 0.03 percent to $13,536.90 a tonne, while aluminium fell 0.83 percent to $3,150.10. Zinc, tin, nickel and lead also declined.
Natural rubber prices continued to hit fresh highs. In Bangkok, RSS-1 rose to $308.40 per quintal and RSS-3 to $305. In Kerala, RSS-4 touched a record Rs 28,000 per quintal.
Cocoa gained 1.85 percent to $5,913.28 a tonne, supported by expectations of lower production in West Africa due to El Niño conditions.
Arabica coffee fell 0.50 percent to $3.25 per pound despite tightening supplies in Brazil.
The US dollar index eased to around 100.44 in early trade. The euro strengthened to 1.1468 against the dollar, while the pound rose to 1.3527. The Japanese yen traded at 162.03 per dollar.
The rupee weakened by six paise on Wednesday to close at 96.26 against the US dollar. In the offshore NDF market, the rupee was trading around 96.28.
Brent crude settled at $84.95 a barrel on Wednesday and edged up to around $85.33 in early Thursday trade.
WTI crude traded near $80.11 a barrel as investors continued to monitor developments in West Asia.
Bitcoin climbed to around $64,750, while Ether traded near $1,920. Solana hovered around $77.30.
Sensex: 77,185.43 (+0.17 percent)
Nifty 50: 24,078.50 (+0.11 percent)
Bank Nifty: 57,757.85 (+0.51 percent)
Nifty Midcap 100: 62,943.20 (+0.28 percent)
Nifty Smallcap 100: 19,355.35 (-0.67 percent)
Dow Jones: 52,658.64 (+0.29 percent)
S&P 500: 7,572.40 (+0.38 percent)
Nasdaq Composite: 26,269.23 (+0.62 percent)
US dollar/Indian rupee: Rs 96.26 (+Rs 0.06)
Gold (spot): $4,061.40 an ounce (+$7.70)
Gold (Kerala, 22-carat): Rs 1,05,280 per sovereign (+Rs 560)
Brent crude: $84.95 a barrel (+$0.22)
