US stock market to Kospi: Here’s world equity heatmap you should know before opening of the Indian stock market today

The Indian stock market is expected to open on a steady note on Thursday, following mixed cues from global markets, as sentiment remain cautious amid the US-Iran war and elevated crude oil prices. The trends on Gift Nifty also indicate a positive start for the Indian benchmark index.

The Gift Nifty was trading around 24,128 level, a premium of nearly 61 points from the Nifty futures’ previous close.

The escalating geopolitical tensions between the United States and Iran, rising crude oil prices, and persistent weakness in the Indian rupee are likely to weigh on market sentiment.

Global markets remain mixed amid concerns over the ongoing West Asia war. Asian stocks trade sharply lower, while the US stock market ended higher overnight.

Meanwhile, the International Monetary Fund (IMF) has warned that prolonged disruptions in the Middle East could pose significant risks to global energy supplies and economic growth.

“With crude oil prices remaining elevated and geopolitical risks continuing to dominate market sentiment, investors are expected to remain cautious in the near term. On the domestic front, the India–UK trade pact has officially come into effect, reducing tariffs on a range of goods while strengthening bilateral services trade. The agreement is expected to improve long-term trade prospects and provide a positive structural boost to the Indian economy,” said Ponmudi R, CEO of Enrich Money.

Here’s a look at the global equity heatmap.

Asian Markets

Asian markets traded sharply lower on Thursday, reflecting renewed concerns over the escalating Middle East conflict and its potential impact on global growth. Concerns about overvaluations of technology shares intensified selling pressure.

Japan’s Nikkei 225 declined 2.84%, while the Topix fell 1.12%. South Korea’s Kospi crashed 6.21%, and the Kosdaq Index slumped 3.89%. Hong Kong’s Hang Seng index gained 1.71%, while the CSI 300 lost 0.55%

Wall Street

US stock market ended higher on Wednesday as a decline in inflation data lifted investor sentiment.

The Dow Jones Industrial Average gained 150.91 points, or 0.29%, to 52,659.18, while the S&P 500 rose 28.83 points, or 0.38%, to 7,572.42. The Nasdaq Composite closed 162.22 points, or 0.62%, higher at 26,269.23.

“Wall Street ended higher overnight after softer-than-expected US inflation data reinforced expectations that the Federal Reserve may adopt a less hawkish monetary policy stance. A stronger-than-expected start to the US earnings season also supported investor sentiment,” said Ponmudi R.

European Markets

European shares ended Wednesday mixed, as a strong rebound in luxury stocks countered weakness in telecom and technology shares. The pan-European STOXX 600 index inched 0.12% higher to 642.84 points.

London’s FTSE 100 eased 0.13% to 10,515.92, while Germany’s DAX fell 0.59% and France’s CAC 40 rose 0.19%.

Nifty 50 Outlook

Nifty 50 continues to exhibit a cautious technical structure, although sustained buying interest around the 24,000 psychological mark continues to support the broader recovery trend.

“From a technical perspective, the 24,200 level remains the immediate resistance. A sustained breakout above this level would reinforce bullish momentum and could pave the way for an advance towards the 24,300 – 24,400 region,” said Ponmudi R.

On the downside, he believes the 24,000 psychological mark continues to serve as the immediate and crucial support, and a decisive break below 24,000 could trigger renewed selling pressure and drag the Nifty 50 index towards the 23,900 – 23,800 support zone.

“Overall, the near-term technical outlook remains cautiously positive. However, the Nifty 50 index will need to reclaim and sustain above the 24,200 resistance level to confirm stronger bullish momentum and support the continuation of the ongoing recovery,” said Ponmudi R.

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