The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a positive note Friday, following gains in global markets. According to reports from Livemint, investors are hoping for a US-Iran peace deal to end the war in the Middle East. Gift Nifty was trading around 23,654 level, a premium of nearly 23 points from the Nifty futures' previous close, indicating a flat start for the Indian stock market indices. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% higher, set for a modest weekly rise, with Japan's Nikkei gaining 2%.
On Thursday, the Indian stock market ended lower, weighed down by profit booking in select index heavyweights. As reported by Livemint, the Sensex declined 135.03 points, or 0.18%, to close at 75,183.36, while the Nifty 50 settled 4.30 points, or 0.02%, lower at 23,654.70. Market analysts continue to maintain a cautious stance, with Ajit Mishra from Religare Broking Ltd recommending a stock-specific trading approach while maintaining balanced exposure on both long and short sides.
Asian markets traded higher on Friday, following overnight gains on Wall Street, amid hopes of a US-Iran peace deal. According to Livemint reports, Japan's Nikkei 225 rallied 1.36%, while the Topix rose 0.55%. South Korea's Kospi gained 0.52%, while the Kosdaq Index jumped over 3%. U.S. stocks futures rose 0.2% and European futures gained 0.8%. The positive sentiment was supported by US markets, where the Dow Jones posted a record closing high, gaining 276.31 points to 50,285.66.
The US and Iran are engaged in indirect talks aimed at developing a framework for a possible agreement, as reported by Livemint. The two sides are currently exchanging messages and draft texts. US Secretary of State Marco Rubio indicated there had been 'some good signs' in talks with Iran, though Tehran's uranium stockpile and control over the Strait of Hormuz remained sticking points. This diplomatic progress has contributed to positive market sentiment globally, with Chris Weston from Pepperstone noting that it increasingly feels as though the news flow is gradually trending towards something tangible that markets can ultimately price with greater conviction.
Oil prices rose in early trading on Friday after dropping sharply as conflicting messages on the talks keep investors guessing. Brent crude futures rose 2% to $104.71 a barrel but were set for a 6% drop in the week, while U.S. West Texas Intermediate futures were up 1.66% at $98.01. The dollar held near a six-week top at 99.247 against a basket of currencies, benefiting from safe-haven demand. The euro was at $1.1614 in early trading, close to the six-week low it hit on Thursday, set for a 1% drop this month. The Japanese yen last fetched 159.11 per US dollar, with data showing Japan's core inflation slowed to four-year low in April, complicating the outlook for the Bank of Japan's rate-hike path.
