Asian markets traded mixed on Thursday as investors turned cautious ahead of a crucial meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska. The talks, to be held at a US military base on Friday, are expected to be decisive for India’s trade prospects, particularly in the wake of fresh US tariff threats.
US Treasury Secretary Scott Besent warned that if no agreement is reached, Washington could impose additional punitive tariffs on Russia’s allies, including India, beyond the already onerous 50 percent rate. He also called on European nations to join the new measures. If the rate climbs further, India’s exports to the US could virtually cease. However, if the discussions lead to a breakthrough, the 25 percent punitive tariff on India may be withdrawn. The geopolitical backdrop was further underscored by upcoming visits from the Chinese foreign minister to India and India’s external affairs minister to Russia, with efforts to restart direct air services between India and China also under way.
European markets closed higher on Wednesday after Trump’s talks with European leaders on the Ukraine issue were seen as broadly satisfactory. US markets rallied, with the Dow Jones Industrial Average climbing 463.66 points (1.04%) to 44,922.27. The S&P 500 added 20.82 points (0.32%) to close at 6,466.58, and the Nasdaq Composite gained 31.24 points (0.14%) to 21,713.14 — both ending at record highs. Small-cap shares outperformed, with the Russell 2000 jumping over 2 percent.
The rally was fuelled by growing expectations that the US Federal Reserve will cut interest rates in September, although views remain divided on further reductions this year. The cryptocurrency exchange Bullish surged on its New York debut, closing 84 percent above its IPO price after an intraday gain of 143 percent. Bitcoin broke records to trade above $123,600, while Ether rose over 5 percent to above $4,730.
Indian equities closed higher on Wednesday but pared gains from intraday peaks as caution ahead of the Alaska summit tempered sentiment. The Sensex rose 304.32 points (0.38%) to close at 80,539.91, while the Nifty gained 134.95 points (0.54%) to end at 24,619.35. Bank Nifty added 137.75 points (0.25%) to 55,181.45. Mid-cap and small-cap indices gained 0.63 percent and 0.66 percent, respectively.
Healthcare, pharmaceuticals, metals and auto stocks led the advance, while FMCG, oil & gas and public sector banks saw mild declines. Market breadth favoured gainers, with the BSE reporting 2,150 advances against 1,946 declines. Foreign institutional investors were net sellers to the tune of ₹3,644.43 crore, while domestic funds bought ₹5,023.79 crore worth of shares.
Muthoot Finance reported a strong first-quarter performance, with net profit surging 89.6 percent year-on-year to a record ₹2,046 crore, net interest income up 50.6 percent, and net interest margin rising to 12.15 percent. Jubilant FoodWorks also beat estimates, posting an 18.2 percent rise in revenue and a 29.5 percent jump in profit. Bharat Dynamics rallied 6.90 percent after reporting a 30 percent revenue increase and a 157 percent profit surge.
In contrast, CSB Bank fell 4.96 percent on weaker margins and higher non-performing assets, while Insecticides India dropped 11 percent despite a 17.4 percent profit rise. United Spirits saw profit decline 13.7 percent despite higher revenue, and Hindustan Aeronautics rose on strong order expectations despite a 4 percent profit fall.
Gold extended gains on expectations of US rate cuts and a weaker dollar, with spot prices closing at $3,357.30 per ounce and briefly touching $3,372.60. In Kerala, gold prices fell ₹40 on Wednesday to ₹74,320 per sovereign but were seen rising again on Thursday. Silver traded at $38.51 per ounce.
Brent crude settled below $66 at $65.63 per barrel, with WTI at $62.86. The dollar index fell to 97.84, supporting the rupee, which closed 27 paise higher at 87.44 per dollar.
Cryptocurrencies are surging to record highs, driven by the successful IPO of crypto agency Bullish, which debuted with substantial gains. Bitcoin has broken its previous record, crossing $123,600. Ether jumped 5 percent to climb above $4,730, while Solana, Dogecoin, and XRP also posted strong gains.
