Global markets showed signs of uncertainty on Wednesday, with Wall Street indices mixed and Asian equities trading in divergent directions on Thursday morning. Brent crude extended gains, while Indian benchmarks managed to close above key levels despite the foreign investor selling pressure.
Progress on Ukraine peace talks remained slow, while investors awaited comments from US Federal Reserve Chair Jerome Powell on interest rate trends, on Friday evening. Brent crude rose past $67 per barrel, with WTI and Murban grades also firming.
In July, India’s core sector output rose only 2 percent, underscoring continuing weakness seen in the first quarter. Analysts noted that sluggish performance in basic industries could weigh on industrial momentum going forward.
Gift Nifty futures closed at 25,085.50 on Wednesday and traded around 25,070 in early hours on Thursday, suggesting a flat start for domestic markets.
US equities ended mostly lower on Wednesday as technology and retail stocks dragged. The S&P 500 fell for the fourth straight session, losing 0.24 percent to 6,395.78. The Nasdaq dropped 0.67 percent to 21,172.85, while the Dow Jones Industrial Average eked out a 0.04 percent gain to 44,938.31.
Intel shares tumbled 7 percent despite announcements of major new investments, including potential backing from the US government and Japan’s SoftBank. Retailer Target reported weaker revenues and said its CEO would step down, sending its stock down 6 percent. Lowe’s posted stronger-than-expected earnings. Novavax sank 7.5 percent as analysts raised concerns over its business outlook.
US futures were marginally lower in Asian hours, with Dow, S&P 500, and Nasdaq contracts slipping between 0.12 and 0.15 percent.
In Asia, Japan’s Nikkei fell 0.65 percent in morning trade, while South Korean and Australian benchmarks advanced. European markets had closed mixed on Wednesday, with the UK’s FTSE extending gains but French and German indices declining. Defence stocks retreated on renewed hopes of a truce in Ukraine.
Indian equities gained for a fifth consecutive session on Wednesday, with the Nifty closing above 25,000, a level seen as technically important for sustaining momentum.
The Sensex ended 213.45 points (0.26 percent) higher at 81,857.84, while the Nifty rose 69.90 points (0.28 percent) to 25,050.55. However, Bank Nifty slipped 0.30 percent to 55,698.50.
IT stocks led the rally, with Infosys jumping 3.83 percent and TCS climbing 2.61 percent. Mphasis, Coforge, Tech Mahindra, Wipro and Persistent also advanced. FMCG and realty counters supported gains, while banking, financials, media, pharma and healthcare stocks came under pressure. Mid-cap and small-cap indices also advanced.
Market breadth remained positive, with more stocks rising than falling on both BSE and NSE. Foreign portfolio investors sold equities worth ₹1,100.09 crore, while domestic institutions bought shares worth ₹1,806.34 crore.
Analysts said the Nifty faces immediate support at 24,965 and 24,865, with resistance seen at 25,085 and 25,185.
India Cements said 2.01 crore shares would be sold via an offer-for-sale.
Sula Vineyards plans to expand into whisky, vodka and Scotch, and may acquire two or three smaller companies for this purpose.
Ajanta Pharma confirmed an income-tax search at its office.
Vedanta’s board will meet today to consider a second interim dividend. The company earlier declared ₹7 per share as dividend.
Gold prices rose sharply overnight but slipped again in early trade. Spot gold gained $32.80 to close at $3,348.90 an ounce on Wednesday but fell back below $3,342 in early Thursday trade. In India, retail gold dropped ₹440 per sovereign to ₹73,440. Silver stood at $37.79 an ounce.
Among base metals, aluminium rose 0.4 percent, but copper, lead, tin and nickel declined. Rubber firmed 0.35 percent, while cocoa dropped 3.23 percent. Coffee gained 0.88 percent, while tea and palm oil prices weakened.
The dollar index eased to 98.22 on Wednesday, before edging up slightly to 98.26. The euro rose to $1.1646, the pound to $1.345, while the yen strengthened to 147.38 per dollar. US 10-year Treasury yields fell to 4.29 percent. The rupee weakened 12 paise to close at 87.07 per dollar.
Crude oil rose 1.6 percent on Wednesday, with Brent settling at $66.84 and edging up to $67.02 in early trade. WTI was at $63.22, while Murban crude traded at $70.03, supported by strong Indian demand. Natural gas rose marginally.
Cryptocurrencies also edged higher, with Bitcoin near $114,150 and Ether holding above $4,310.
Sensex: 81,857.84 (+0.26%)
Nifty 50: 25,050.55 (+0.28%)
Bank Nifty: 55,698.50 (-0.30%)
Mid Cap 100: 57,930.50 (+0.46%)
Small Cap 100: 17,968.40 (+0.30%)
Dow Jones: 44,938.31 (+0.04%)
S&P 500: 6,395.78 (-0.24%)
Nasdaq: 21,172.85 (-0.67%)
Brent crude: $66.84 (+1.05)
Gold: $3,348.90 (+32.80) | ₹73,440 per sovereign (-₹440)
Dollar index: 98.22 (↓)
