Nikkei, KOSPI to US stocks: Global equity heatmap you must know before opening bell of the Indian stock market

Global markets today: Following an improvement in global risk appetite, the US stock market advanced, with the S&P 500 closing at a record high after weaker-than-expected US producer price inflation (PPI) strengthened expectations of a steady US Fed rate. Asian markets mirrored the upbeat tone of global markets, with the Japanese Nikkei 225 index and South Korean KOSPI index registering sizeable gains in the early morning session on Friday.

“While softer US inflation data has reinforced expectations that the Federal Reserve will keep interest rates unchanged in September, the unresolved US-Iran standoff continues to underpin crude oil prices, leaving oil-importing economies such as India more vulnerable to inflationary pressures and currency volatility,” said Ponmudi R, CEO at Enrich Money.

The Enrich Money expert said that global markets' risk appetite improved after weaker-than-expected US producer price inflation strengthened expectations of a steady Federal Reserve policy stance. Continued strength in AI-driven technology stocks also lifted the Nasdaq, extending the positive momentum across US equities.

US-Iran news

On the geopolitical front, uncertainty remains elevated as the US Secretary of Defence indicated that Washington could maintain its blockade on Iran for an extended period, while Tehran warned that the conflict could persist through President Donald Trump's current term. The increasingly entrenched positions on both sides continue to cloud prospects for a diplomatic breakthrough and keep investors wary of further disruptions to global energy supplies.

Crude oil price in focus

WTI crude oil has eased modestly from its recent highs, trading around $81 per barrel. However, prices remain elevated and continue to reflect a geopolitical risk premium, with developments surrounding the US-Iran conflict and the Strait of Hormuz likely to remain the principal drivers of sentiment across global commodity and financial markets.

Global markets' equity heatmap

Here we list out the equity heatmap of the global markets today:

US stock market: S&P 500 hits record high

US equities closed at fresh record highs on Thursday after a benign producer price report reinforced expectations that the Federal Reserve could keep interest rates unchanged next month. The S&P 500 briefly crossed the 7,800 mark for the first time intraday before closing 0.65% higher at a record, while the Nasdaq Composite gained 0.81%, supported by strength in Meta Platforms, Micron Technology, and Netflix. The Dow Jones Industrial Average lagged, edging up just 0.13%.

July's Producer Price Index (PPI) was unchanged from the previous month, compared with expectations for a 0.2% increase, while the annual rate slowed to 4.7% from 5.5% in June, both readings coming in below economists' expectations. The moderation was driven largely by a 3.1% decline in energy prices, including a 5.7% drop in gasoline prices, and a 0.9% fall in food prices. However, the underlying picture remained more mixed. Core PPI, excluding food, energy, and trade services, accelerated to 0.4% in July from 0.1% in June, driven in part by a 6.5% jump in portfolio management fees, a component that feeds directly into the Federal Reserve's preferred core PCE inflation measure due later this month.

Among individual stocks, Workday surged 18% following reports of potential buyout discussions with private equity firm Silver Lake, while Harmonic climbed 9% after reporting stronger-than-expected earnings and raising its full-year guidance.

Asian markets today

Asian markets traded higher on Friday, with Japan's Nikkei 225 rising more than 1.45% and South Korea's Kospi advancing over 1.37%, extending their recent gains as investors welcomed softer US producer inflation data.

The positive tone was further supported by continued optimism about artificial intelligence, following reports that Anthropic is targeting a valuation of around $2 trillion for a potential October initial public offering.

European markets: Stocks retreat from record high

European equities edged lower on Thursday after their recent run to record highs. The pan-European STOXX 600 slipped 0.04%, Germany's DAX declined 0.12%, France's CAC 40 fell 0.28%, and Italy's FTSE MIB lost 0.56%.

Technology-related stocks outperformed, with ASML gaining 2.7% following a broker upgrade, while AI infrastructure names, including Siemens Energy, also advanced. Luxury stocks underperformed, with LVMH, Hermès, and Kering all ending lower.

What does it mean for the Indian stock market today?

GIFT Nifty futures are trading in the 24,400–24,450 range in early trade, compared with the Nifty's previous close of 24,395, pointing to a largely flat opening for domestic equities as geopolitical concerns and elevated energy prices continue to temper optimism generated by stronger overseas markets.

Expecting a cautious start for the Indian stock market on Friday, Ponmudi R of Enrich Money said, “Indian equity markets are expected to trade with a cautious bias, with investors likely to remain selective despite an improvement in global risk appetite.”

Nifty 50 to Sensex today: Outlook for key Indian indices

Speaking on the outlook for the Nifty 50 / Sensex today, Shrikant Chouhan, Head Equity Research at Kotak Securities, said, “We believe that the market has completed one leg of correction and is currently trading near an important support zone of the 20-day SMA. If it succeeds in trading above this level, it could bounce back to 24,500–24,575/78500-78700. On the flip side, if the index falls below 24,300/77700, selling pressure is likely to accelerate. Below this level, it could slip to 24,200–24,100/77400-77200."

On the outlook of the Bank Nifty today, Vatsal Bhuva, Technical Analyst at LKP Securities, said, “The Bank Nifty index continues to consolidate within a range of 57,200–58,000 levels, with the index finding support near 57,200 and facing resistance around 58,000.”

The LKP Securities expert said the overall setup suggests a range-bound outlook, with a relatively flat RSI indicating limited directional momentum. Hence, traders may adopt a levels-based approach until a decisive breakout or breakdown emerges. Support for the index is placed at 57,200, while 58,000 remains the key resistance level. A sustained move beyond either level could provide further directional cues.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.