Global equity markets remained under pressure on Wednesday amid continued uncertainty over trade negotiations and geopolitical tensions. Moves in the US to replace the Federal Reserve chairman added to investor unease. President Donald Trump's aggressive push for unilateral trade agreements is unsettling not just developing economies but also advanced ones such as Japan, the European Union and Canada. Europe and Japan are reportedly exploring joint responses to U.S. trade tactics.
India, meanwhile, continues to face pressure from the U.S. over a trade deal, with several demands seen as unacceptable. However, the Indian government has not publicly commented on the matter.
Despite a slew of corporate earnings, overall profits remained subdued, with valuations expected to come under pressure. Equity prices could decline in the coming days if earnings disappoint further.
State Bank of India has launched a ₹25,000 crore qualified institutional placement (QIP), with a floor price of ₹811.05 per share. Shares closed 2.5 percent lower on Wednesday. LIC and several insurance companies have joined as anchor investors.
In the derivatives segment, Gift Nifty closed at 25,282 on Wednesday night. It dipped to 25,255 in early trade today before recovering, indicating a positive start for Indian equities.
European markets closed lower for a fourth straight session, weighed down by concerns over tariffs and speculation that Fed chair Jerome Powell could be dismissed. US markets, after high intraday volatility, ended with modest gains. Indexes that began the session higher slipped mid-day by around 0.5 percent, triggered by reports suggesting Trump was preparing to sack Powell. Although Trump later denied the reports, speculation that Powell may resign over corruption allegations also added to the nervousness. This volatility eventually led to a one percent rebound in US indices.
The Dow Jones rose 231.49 points (0.53 percent) to close at 44,254.78. The S&P 500 gained 19.94 points (0.32 percent) to finish at 6,263.70. The Nasdaq Composite added 52.69 points (0.25 percent) to end at 20,730.49 — its ninth consecutive record close.
US futures were trading lower this morning: Dow down 0.18 percent, S&P 0.17 percent and Nasdaq 0.17 percent. Bank of America, Morgan Stanley and Goldman Sachs all reported better-than-expected Q2 results.
Asian markets were broadly lower today. Japan and South Korea saw declines, and Chinese markets opened weaker.
Japan’s exports fell 0.5 percent in June after a 1.7 percent drop in May. Analysts had expected a 0.5 percent increase. Exports to the U.S. slumped 11.4 percent overall, with vehicle exports plummeting 26.7 percent. Shipments to China were down 4.7 percent. Concerns are mounting that Japan could slip into recession. GDP rose 1.7 percent in Q1, but the rise in U.S. tariffs in April has since hit exports. Exports account for 22 percent of Japan’s GDP. Trump has proposed a 25 percent tariff.
After four straight days of losses, the Indian market remained range-bound and ended with marginal gains. Despite Trump’s statement that a trade deal with India was close, the Indian government remained silent. The lack of an immediate response suggests that New Delhi may be unwilling to rush into an agreement that could require it to remove tariffs and offer unrestricted market access to US goods — similar to Indonesia’s recent concessions. Such a deal could trigger domestic backlash. As a result, any announcement is likely to come at the last minute.
While metal, pharmaceuticals and healthcare sectors ended lower, public sector banks posted strong gains. IT, auto, FMCG, realty and media stocks also advanced.
Foreign institutional investors continued to be net sellers in the cash market.
After an early drop, the key indices rebounded. The Nifty rose from 25,121 to 25,255, and the Sensex climbed from 82,342 to 84,785. The mid cap and small cap indices also witnessed volatility.
The Nifty closed 16.25 points (0.06 percent) higher at 25,212.05, while the Sensex ended up 63.57 points (0.08 percent) at 82,634.48. Bank Nifty rose 162.30 points (0.28 percent) to close at 57,168.95. The Nifty Midcap 100 index gained 8 points (0.01 percent) to 59,620.65, and the Smallcap 100 added 4.80 points (0.03 percent) to end at 19,140.05.
Market breadth remained positive. On the BSE, 2,270 stocks advanced while 1,781 declined. On the NSE, 1,657 stocks closed higher, and 1,267 lower.
On the NSE, 78 stocks hit 52-week highs, while 22 touched new lows. 96 stocks hit the upper circuit and 60 were locked in the lower circuit.
Foreign institutional investors sold shares worth ₹1,858.15 crore in the cash market on Wednesday. Domestic funds bought shares worth ₹1,223.55 crore.
With the Nifty closing above 25,200, investors expect the upward trend to continue. Unless a major trigger emerges, analysts believe the market may consolidate. The next resistance for the Nifty is seen at 25,400, with support at 25,140 and 25,065. Resistance levels are expected around 25,245 and 25,330.
Gold prices remained volatile. Uncertainty over the Fed and tariffs saw gold climb from $3,320 to $3,372 per ounce before easing. It finally closed $23.30 higher at $3,347.90. Prices fell slightly to $3,342 in early Thursday trade.
In Kerala, gold prices fell by ₹360 on Wednesday to ₹72,800 per sovereign. Silver rose to $37.98 per ounce.
Rubber gained 0.54 percent in international markets to 166.10 cents/kg. Cocoa dropped 3.11 percent to $7,639 per tonne. Coffee surged 4.29 percent, while tea fell 4.65 percent. Palm oil was down 0.17 percent.
The US dollar index closed at 98.39 on Wednesday and rose slightly to 98.47 on Thursday morning.
In currency markets, the euro fell to $1.1623 and the pound to $1.3397. The Japanese yen strengthened to 148.37 per dollar. Yields on U.S. 10-year Treasury bonds fell to 4.463 percent as prices rose.
The rupee appreciated on Wednesday, opening at 86.00 against the dollar and briefly touching 86.04 before falling to 85.78 after RBI intervention. It later closed 13 paise stronger at 85.94. The Chinese yuan weakened to 7.18 per dollar.
Crude oil prices rebounded after falling. Brent crude, which dropped to $68.52 per barrel, recovered to $68.93. WTI traded at $66.93, and Murban crude at $69.81. Natural gas prices edged up.
Cryptocurrencies rallied, with Bitcoin climbing to $119,000. Ethereum surged past $3,400 after Peter Thiel, former PayPal CEO, invested $500 million in its promoter company.
