Inflation fears, rupee weakness and continuing tensions in West Asia are keeping markets under pressure. Foreign institutional selling remains relentless, while rising inflation in the US is raising concerns that interest rates could move higher again. These anxieties are expected to weigh on Indian markets today.
Global markets are closely tracking US President Donald Trump’s visit to China. Investors are watching whether the tariff agreement between the US and China will be extended and whether China will finalise a major purchase deal for Boeing aircraft. Markets are also focused on whether Chinese President Xi Jinping will agree to exert pressure on Iran. Expectations remain that the ceasefire in the US-China trade war will continue; failure to reach an understanding could trigger sharp market weakness.
Gift Nifty closed at 23,584 on Wednesday night in derivative trading at GIFT City and slipped to 23,522 this morning, indicating a mildly positive opening for the Nifty.
Markets are focused on the Trump-Xi summit and the future of the US-China tariff truce.
US wholesale inflation touched a four-year high of 6 percent, reviving fears of higher interest rates.
Asian markets rose on optimism over the summit, though Shanghai opened weak.
Foreign institutional investors sold equities worth ₹4,703 crore in the Indian cash market.
Gold prices remained volatile after India raised import duty on gold and silver.
Copper surged past $14,000 a tonne to a record high amid supply concerns.
The rupee weakened to a record closing low of 95.70 against the dollar.
Brent crude remained above $105 a barrel despite a mild correction.
US Vice-President JD Vance said efforts for peace in West Asia were progressing cautiously, though no concrete breakthrough emerged.
Technology stocks lifted Wall Street indices, with the S&P 500 and Nasdaq scaling fresh record highs, while the Dow Jones slipped. Investors were disappointed after wholesale inflation in April climbed to 6 percent, the highest level in four years. Many now believe the new Federal Reserve chairman Kevin Warsh may eventually have to raise interest rates.
The Dow Jones fell 67.36 points or 0.14 percent to close at 49,693.20. The S&P 500 gained 43.29 points or 0.58 percent to end at 7,444.25, while the Nasdaq surged 314.14 points or 1.20 percent to 26,402.34.
US futures were higher this morning, with Dow futures up 97 points, S&P futures gaining 14 points and Nasdaq futures rising 180 points.
In New York trading, the ADR (American Depository Receipt) of HDFC Bank fell 0.67 percent before recovering 0.50 percent in after-hours trade to $24.00.
ICICI Bank ADR declined 0.39 percent and slipped another 0.16 percent in extended trading to $25.64.
Infosys ADR dropped 1.58 percent before edging up 0.17 percent to $11.88, while Wipro lost 2.15 percent before rebounding 1.59 percent to $1.85.
European markets advanced on hopes surrounding the US-China summit. In Britain, Prime Minister Keir Starmer rejected calls to resign, though markets expect mounting political pressure could eventually force him out.
Asian markets traded mostly higher today on optimism over the Trump-Xi meeting. Japan’s Nikkei gained 0.70 percent, South Korea’s Kospi rose 0.40 percent, while Hong Kong’s Hang Seng climbed 1.25 percent. Australian shares recovered from early losses. Shanghai, however, opened weak.
Despite fears of rising fuel prices and tighter economic controls, Indian equities managed modest gains on Wednesday after three consecutive sessions of decline. Markets remained volatile through the session.
Metal, consumer durable and oil & gas stocks led gains, while IT, automobile, realty and banking shares weakened.
Jewellery stocks declined for a third straight day after the government raised import duty on gold. Shares of Titan Company, Kalyan Jewellers and other jewellery companies ended lower amid fears of slower demand.
Foreign institutional investors remained heavy sellers, offloading equities worth ₹4,703.15 crore in the cash market on Wednesday, while domestic institutions bought shares worth ₹5,869.05 crore.
The Sensex rose 49.74 points or 0.07 percent to close at 74,608.98. The Nifty 50 gained 33.05 points or 0.14 percent to 23,412.60. Bank Nifty fell 99.05 points or 0.18 percent to 53,456.15.
The Nifty Midcap 100 index climbed 0.77 percent, while the Smallcap 100 index added 0.31 percent.
Tata Motors reported a 22 percent rise in fourth-quarter revenue from its commercial vehicles division, while net profit surged 70 percent.
Bharti Airtel posted a 16 percent rise in fourth-quarter revenue, but net profit declined 33.5 percent because of an unfavourable comparison with last year’s tax gain.
Gold prices remained volatile after US wholesale inflation accelerated to 6 percent, reviving fears of higher interest rates.
In Kerala, 22-carat gold jumped ₹5,880 per sovereign on Wednesday to ₹1,18,800.
Copper climbed to a record $14,095.85 a tonne amid supply concerns and rising demand from AI-linked infrastructure projects.
The rupee weakened further to a record closing low of 95.70 against the dollar.
Brent crude closed at $105.63 a barrel and eased slightly this morning to $105.43.
Bitcoin slipped below $79,600, while Ether traded below $2,260.
Sensex: 74,608.98 (+0.07%)
Nifty 50: 23,412.60 (+0.14%)
Bank Nifty: 53,456.15 (-0.18%)
Nifty Midcap 100: 60,164.65 (+0.77%)
Nifty Smallcap 100: 17,994.05 (+0.31%)
Dow Jones: 49,693.20 (-0.14%)
S&P 500: 7,444.25 (+0.58%)
Nasdaq: 26,402.34 (+1.20%)
Dollar/rupee: ₹95.70 (+₹0.08)
Gold (ounce): $4,690.00 (-$26.40)
Gold (sovereign): ₹1,18,800 (+₹5,880)
Brent crude: $105.63 (-$2.14)
