Indian equities are poised to open higher on Thursday, even as global markets present mixed signals. Declining crude oil prices, spurred by the U.S.-Iran truce, are expected to alleviate inflationary pressures stemming from imported energy.
Conversely, a stronger U.S. dollar, rising Treasury yields, and foreign institutional investor selling could exert downward pressure on the markets as trading continues.
S&P Global Ratings projected on Wednesday that India’s GDP growth will decelerate to 6.6% in the fiscal year 2026‑27, attributing the slowdown to energy constraints, an anticipated sub‑par monsoon, and diminishing global growth prospects.
On Wednesday, the benchmark indices Sensex and Nifty rose 1% and 0.8% respectively, driven by gains in financial and technology stocks after global oil prices slipped to a four‑month low, prompted by reports that additional tankers stranded in the Gulf were beginning to navigate the Strait of Hormuz.
The rupee edged up 11 paise to 94.65 per dollar, reflecting growing optimism about a prospective U.S.-India bilateral trade pact and remarks from RBI Governor Sanjay Malhotra indicating that discussions on interest‑rate hikes remain premature.
Foreign institutional investors net sold shares valued at Rs 1,843 crore on Wednesday, whereas domestic financial institutions net purchased shares worth Rs 3,637 crore, according to provisional exchange data.
Asian markets opened mixed on Thursday, with technology stocks in South Korea and Japan rallying amid strong earnings and upbeat forecasts from Micron and Qualcomm, which helped alleviate concerns about AI demand, elevated valuations, and the sustainability of the AI‑driven rally that has propelled global equities to record highs.
The dollar index is poised for its steepest monthly increase in nearly a year, as market participants price in a potential Federal Reserve rate hike by December.
Gold extended its decline, trading below $3,970 per ounce, hovering near its lowest level since November after briefly dipping below $4,000 an ounce earlier on Friday.
Oil prices continued to fall, with Brent crude futures slipping nearly 2% to below $73 per barrel in Asian trading, marking a fourth straight session of losses as tanker traffic through the Strait of Hormuz picked up.
U.S. equities surrendered early gains to close mixed overnight, as investors rotated out of high‑flying technology and artificial‑intelligence stocks into other undervalued sectors.
Traders also absorbed disappointing data indicating that U.S. new home sales unexpectedly declined in May for the second consecutive month.
The Dow edged up 0.4%, while the technology‑heavy Nasdaq Composite fell 0.4% and the S&P 500 slipped 0.1%, reflecting lingering inflation worries and concerns over potential rate hikes.
European equities also ended mixed on Wednesday, following a cautious session amid reports of disagreements between Washington and Tehran over key terms of their peace agreement.
The pan‑European STOXX 600 edged up 0.1%, while Germany’s DAX slipped 0.6% due to weakness in defense stocks. The U.K.’s FTSE 100 added 0.3% and France’s CAC 40 gained 0.5%.
