Indian Stock Market Update: 8 Key Overnight Developments Impacting Friday’s Trade

Senthil Kumar
Jun 20
2 min read

The Indian stock market is likely to open on a muted note on Friday, with Gift Nifty indicating a cautious start amid mixed global cues. Here are eight key developments that shaped the market sentiment overnight:'

1. Gift Nifty Indicates Flat Opening

Gift Nifty was trading near the 24,793 level, showing a marginal 10-point discount from the Nifty futures' previous close. This points to a subdued start for benchmark indices, Sensex and Nifty 50.

2. Sensex and Nifty Close Lower on Thursday

On Thursday, domestic indices ended slightly in the red:

Sensex fell by 82.79 points (0.10%) to close at 81,361.87
Nifty 50 slipped by 18.80 points (0.08%) to settle at 24,793.25

Despite strength in the benchmarks earlier in the week, profit booking across sectors led to a weak close.

3. Geopolitical Tensions: Israel-Iran War Escalation

Markets remain on edge as the Israel-Iran conflict intensifies. The geopolitical uncertainty has pushed crude oil prices higher, adding pressure to global inflation expectations and investor sentiment.

Ajit Mishra, SVP at Religare Broking, commented:

"The strength in benchmarks hides underlying weakness. With crude prices rising due to geopolitical risks, we advise caution until clear direction emerges."

4. Crude Oil Watch: Eyes on $80 Mark

Brent crude is hovering close to the critical $80 per barrel level. A breakout above this could lead to further volatility in equities and inflationary concerns for oil-importing countries like India.

5. Asian Markets Mixed After China Data

Asian equities traded mostly higher on Friday:

Nikkei 225 (Japan) rose 0.13%
Kospi (South Korea) gained 0.51%
Kosdaq added 0.41%
Topix (Japan) was flat
Hang Seng (Hong Kong) futures pointed to a softer open

Investors in Asia are balancing positive Chinese economic data against rising Middle East tensions.

6. Wall Street Closed for Juneteenth

The US stock market remained closed on Thursday in observance of Juneteenth. However, futures trading indicated a negative bias ahead of Friday’s session:

Dow Futures fell 154 points (-0.3%)
Nasdaq 100 Futures down 0.2%
S&P 500 Futures slipped 0.2%

7. Cautious Sentiment Among Traders

With profit booking visible in broader markets, and global headwinds in play, investors are showing signs of caution. Analysts recommend watching support levels on the Nifty 50 and avoiding aggressive trades until market direction becomes clearer.

8. Focus on Interest Rates in China

Investors are keeping an eye on the People’s Bank of China for any signals on interest rate moves, especially after recent sluggishness in economic growth. A surprise move here could impact global risk appetite, including in India.

Conclusion: Cautious Start Ahead

With Gift Nifty hinting at a flat start, traders should expect a range-bound session unless global cues offer fresh momentum. Focus remains on geopolitical tensions, crude oil movement, and any significant cues from global central banks.