Asian markets remained mixed on Thursday as global uncertainty showed no signs of easing. Investors were cautious ahead of the Reserve Bank of India’s monetary policy announcement scheduled for Friday morning, with expectations that the repo rate could be trimmed by at least 25 basis points to boost credit growth.
Trade-related tensions continued to weigh on sentiment, with US President Donald Trump raising import duties on steel and aluminium to 50 percent. As a result, the average US import tariff has surged to 17.3 percent, up from 2.4 percent in December. The lack of clarity on a potential conversation between Trump and Chinese President Xi Jinping added to market anxiety, with Trump recently suggesting that any agreement with Xi would not come easily.
Trade talks between India and the US also remain inconclusive. India has lodged a complaint with the World Trade Organization over Washington’s tariff hike on steel, signalling growing tensions.
In the US, weaker-than-expected job growth in the private sector pressured the dollar, lifting gold prices. Only 37,000 jobs were added in May compared to expectations of 1,10,000, with downward revisions for April adding to recession concerns. President Trump reiterated his call for emergency rate cuts by the US Federal Reserve, though the Fed has shown no indication of obliging.
The US markets closed mixed on Wednesday. The Dow Jones Industrial Average fell 91.90 points (0.22 percent) to 42,427.74, snapping a four-day winning streak. The S&P 100 edged up 0.44 points (0.01 percent) to end at 5970.81, while the tech-heavy Nasdaq Composite rose 61.53 points (0.32 percent) to 19,460.49.
US futures were slightly lower in early Thursday trade, with the Dow, S&P, and Nasdaq down 0.09 percent, 0.11 percent, and 0.13 percent respectively.
European markets closed higher on Wednesday, buoyed by optimism surrounding US–EU trade talks in Paris. Despite the steep US tariffs on steel and aluminium, investors seemed reassured by expectations of falling metal prices.
Despite global volatility, Indian markets posted gains on Wednesday, supported by sustained foreign fund inflows. The rupee’s weakness did not dampen sentiment, as most sectoral indices ended higher—except realty. Railway stocks led the rally on reports of accelerated infrastructure rollout. IRCON surged 14 percent, RailTel rose 12 percent, RVNL gained 6.9 percent, and Texmaco climbed 8 percent.
Reliance Infra rallied 11.11 percent to ₹380 after an appellate tribunal stayed a tribunal order in a bond repayment case.
The Sensex touched an intraday high of 81,087 but closed just below the 81,000 mark. The real boost came from mid-cap and small-cap stocks.
In block deals, Flipkart offloaded a 6 percent stake in Aditya Birla Fashion at ₹80.32 per share, dragging the stock down 11 percent. In another move, private equity firm Carlyle exited Indegene by selling a 10.2 percent stake at ₹591 apiece, pushing the stock down 4.7 percent. Ramesh Kunhikannan, promoter of Kaynes Technology, sold a 1.7 percent stake at ₹5,551, resulting in a 1 percent dip in the stock.
At close on Wednesday, the Nifty was up 77.70 points (0.32 percent) at 24,620.20, while the Sensex rose 260.74 points (0.32 percent) to 80,998.25. The Bank Nifty added 76.90 points (0.14 percent) to end at 55,676.85. Midcap and small-cap indices outperformed, with the Nifty Midcap 100 up 0.71 percent and the Smallcap 100 index climbing 0.79 percent.
The advance-decline ratio (ADR) remained in favour of the bulls. On the BSE, 2027 stocks gained while 1993 declined. On the NSE, 1650 stocks rose while 1236 fell.
Fifty-eight stocks on the NSE touched 52-week highs, while 30 hit lows. As many as 105 stocks were locked in upper circuit while 62 hit the lower circuit.
Foreign portfolio investors were net buyers on Wednesday, purchasing shares worth ₹1,076.18 crore. Domestic institutional investors also bought equities worth ₹2,566.82 crore.
Technical indicators suggest that Nifty has firm support at 24,500, with resistance seen around 24,700 and 24,850. For today, supports are placed at 24,550 and 24,485, while resistance levels are expected at 24,670 and 24,715.
Gold prices continued their upward trajectory, supported by a weak dollar and rising fears of a global trade war and geopolitical tension. On Wednesday, gold closed at $3,374.70 per ounce, up $20.90. Prices rose to $3,380 in early Thursday trade before paring gains. Analysts expect further upside if the US jobs data remains weak and rate cut expectations rise.
In Kerala, gold prices rose ₹80 to ₹72,720 per sovereign on Wednesday.
In the international rubber market, prices rose 1.45 percent to 161 cents per kg. Cocoa climbed 0.51 percent to $9,804.33 per tonne, while coffee jumped 1.65 percent.
Cryptocurrencies have once again slipped lower. Bitcoin dropped to $1.049 lakh. Ether continues to hover near $2,600.
