Nifty, Sensex Poised for Gap-Up Start; IT & Metal Sectors in Focus, FIIs Record Highest Buying in 9 Months
On Thursday, June 26, Foreign Institutional Investors (FIIs) made net purchases worth Rs 12,594.38 crore—marking their strongest buying day since September 20, 2024.
Pre-Market Update at 8:00 AM: Indian equity benchmarks, the Nifty 50 and Sensex, are expected to open with a strong upward gap on Friday, June 27, supported by optimism around a potential interest rate cut by the U.S. Federal Reserve. At 7:21 AM, the GIFT Nifty hovered around 25,718—about 170 points higher than the previous close—signaling a positive start for domestic markets.
Asian markets were mostly trading in the green, mirroring overnight gains on Wall Street. In the U.S., the S&P 500 and Nasdaq edged closer to their all-time highs as investor sentiment strengthened.
Back in India, the recent breakout from over five weeks of consolidation has reignited bullish momentum. Both the Nifty and Sensex are now less than 2.7 per cent below their record peaks, raising the probability of fresh highs in the coming sessions.
For June 27, two sectors are likely to gain investors' attention — IT and Metal. The Nifty IT index could be in the limelight following solid gains in the Nasdaq, while the Metal sector may attract interest after copper jumped 3 per cent overnight.
On Thursday, June 26, Foreign Institutional Investors (FIIs) made net purchases worth Rs 12,594.38 crore—marking their strongest buying day since September 20, 2024. In contrast, Domestic Institutional Investors (DIIs) were net sellers, offloading equities worth Rs 195.23 crore.
Indian indices posted their third straight day of gains on Thursday. The Nifty 50 surged by 304.25 points (1.21 per cent) to close at 25,549, while the Sensex climbed 1,000.36 points (1.21 per cent) to settle at 83,755.87. Notably, the Nifty hit a 9-month high during the session.
Major U.S. indices ended higher on Thursday, buoyed by data that reinforced expectations of a Federal Reserve rate cut. The Dow Jones gained 404.41 points (0.94 per cent) to close at 43,386.84. The S&P 500 advanced 48.86 points (0.80 per cent) to 6,141.02, and the Nasdaq Composite rose 194.36 points (0.97 per cent) to finish at 20,167.91.
The U.S. economy shrank by 0.5 per cent in Q1 2025—more than the initial estimate of a 0.2 per cent contraction—following 2.4 per cent growth in Q4 2024. Meanwhile, the trade deficit widened by 11.1 per cent in May to USD 96.6 billion, as goods exports dropped by USD 9.7 billion to USD 179.2 billion.
On the employment front, initial jobless claims declined to 236,000 for the week ended June 21, below the forecast of 245,000. Durable goods orders rebounded sharply, rising 16.4 per cent in May after a 6.6 per cent decline in April.
Gold prices declined further, with spot gold down 0.4 per cent to USD 3,314.27 per ounce. Over the week, bullion prices have fallen 1.6 per cent. U.S. gold futures also dropped 0.6 per cent, closing at USD 3,327.
The U.S. dollar continued its slide, touching a three-year low amid concerns over the Federal Reserve’s independence. The dollar index fell 0.43 per cent and is now over 10 per cent lower year-to-date.
Crude oil prices edged up, but both Brent and WTI remained on track for weekly declines. Brent rose 0.50 per cent to USD 68.07 per barrel, and WTI increased 0.51 per cent to USD 65.57. This comes amid easing geopolitical tensions in the Middle East following a ceasefire between Iran and Israel.
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Disclaimer: The article is for informational purposes only and not investment advice.