Stock market today: The Indian stock market indices are expected to witness a gap-down open as indicated by the subdued performance of the Nifty futures ahead of the opening bell, with investors focusing on mixed global market cues, oil price risk and foreign investor outflows.
NSE data showed that the GIFT NIFTY futures in Ahmedabad indicate, the NIFTY50 is likely to open more than 100 points or 0.45% lower, when compared with the previous market close of the benchmark index.
At 7:54 am, the GIFT NIFTY futures were trading 0.13% lower at 23,300 points ahead of the opening bell as investors expect the geopolitical sentiment and Asian markets’ pullback to grip the Indian markets.
The NIFTY50 index closed 0.33% or 77 points lower at 23,405.60 points after the trading session on Wednesday, compared to 23,483.55 points at the previous market close, as per the exchange data.
The SENSEX index closed 0.41% or 303 points lower at 74,346.17 points as of the stock market close on June 3, compared to 74,649.84 points at the previous market session, as per BSE data.
The key focus of investors will continue to remain on any positive relief from the peace deal negotiations in West Asia, and on stock-specific action based on the corporate news developments.
Key things to know before opening bell
Asian markets today
The stock market investors in Asia were focused on the weak momentum from the US markets, the recent comments about the US-Iran peace deal, and the AI cool-off post a massive rally across global equities.
Hence, the Asian stocks were trading lower, witnessing a pullback with further pressure from the risk of a jump in oil prices on the backdrop of escalating tensions in West Asia.
MarketWatch data showed that Japan’s Nikkei 225 was down 1.8% to 67,169.77 points, the Hong Kong-based Hang Seng index was down 0.82% at 25,423 points, China’s Shanghai Composite was down 0.32% at 4,070 points, while the Singapore-based FTSE was also trading 0.85% lower at 5,094 points on Thursday.
FII activity
NSE data showed that the foreign institutional investors (FIIs) continued their selling streak on the Indian stock market, amid the increasing uncertainty in the global market about the West Asia conflict.
FIIs sold ₹5,616.56 crore worth of capital market assets across the exchanges during the trading session on Wednesday, while the domestic investors continued to remain as the key support purchasing around ₹5,740 crore assets in a single day.
Crude oil prices
During the early market hours on Thursday, the crude oil prices were trading above $96 per barrel (bbl) amid the mixed signals from the West Asia conflict. Although the oil prices have recovered marginally from Wednesday evening levels around $98 per bbl, the rates remain elevated amid no signs of a peace agreement.
Investing.com data showed that the Brent crude oil futures were trading 1.15% lower at $96.76 per bbl as of 7:25 am (IST) on Thursday, compared to $97.9 per bbl at the previous market close.
The exchange data showed that oil prices have surged 3.25% in the last one week period as investors failed to witness any major signs of a peace deal between the United States and Iran.
WTI crude oil prices were trading 0.98% lower at $95.08 per bbl as of 7:26 am (IST) on June 4, compared to $96.02 per bbl at the previous market close, according to the exchange data.
This week, oil prices started rising again after the latest series of escalations in West Asia despite an existing “fragile” ceasefire agreement between the countries.
West Asia conflict
The latest media report from CNN suggests that although US President Donald Trump on Wednesday said that the negotiations between America and Iran have gone “very well,” the Iranian Foreign Minister Abbas Araghchi said there has been no “significant progress” in recent days.
This week, after another round of negotiations between Israel and Lebanon, both nations have agreed to a ceasefire deal, on the contingency that Hezbollah will stop attacks and remove operatives from Southern Lebanon.
On June 3, the US House passed a resolution to limit Trump’s war powers in Iran, with a majority of 215 votes, against the 208 votes contesting the motion.
Gold prices today
At 9:58 pm (ET) in the United States, the New York Mercantile Exchange-based COMEX data showed that the gold prices were trading 0.56% higher at $4,491.70 per ounce on Wednesday evening, compared to $4,466.90 at the previous market close.
The gold prices were trading higher on the backdrop of a marginal decline in the US dollar rate and the increase in demand for the precious metal. Traders are likely to buy more gold if the dollar trades lower in order to gain more quantity at a lower price.
Data collected from the Bloomberg US dollar spot index (DYX) showed that the greenback was trading 0.09% lower at 99.444 as of 9:59 pm (ET), compared to the previous currency market close.
The investors were also fuelling the demand for safe-haven gold due to the uncertainty over whether or not the United States and Iran will be able to come up with some form of a peace agreement in the 14th week of the war after a third round of negotiations.