Today, positive trends were observed in Asian markets, with Japan's Nikkei 225 Index being the most prominent. The Nikkei recorded a b growth of 1.65% and reached a high of approximately five months, further strengthening the recent extended rally.
Stock Market Today: On Friday, the last trading day of the week, indications of strength are visible in the Indian stock market. Relief from global tariff-related concerns, the rise in Asian markets, and a decrease in tensions in the Middle East have again strengthened investor confidence. Additionally, the prospects of new IPOs on the domestic front and data related to foreign exchange reserves have also worked to give a new direction to the market.
Global Signals
The US White House's more lenient stance on tariffs has provided significant relief to global investors. The Liberation Day tariffs announced by the US were to be implemented from July 8, but the President may now extend their deadline. Along with this, the deal deadline with the European Union may also be pushed beyond July 9. These possibilities have reduced the fear of instability in the global trade world and have sparked a positive wave in the markets.
Strength in Asian Markets Also Benefits India
Japan's Nikkei index recorded a strength of 1.22 percent, bringing it closer to its highest level in five months. At the same time, the Topics index also saw a rise of 1.1 percent. Japan's core consumer price index rose 3.1 percent annually during June, which was less than expected. This indicates that inflation is under control and policymakers may have more flexibility in changing rates.
South Korea's Kospi index and Australia's ASX 200 also closed with a rise of approximately 0.4 percent. These all signals indicate that the mood of investors in the Asia-Pacific region is currently positive.
Performance of US Markets
US stock markets witnessed tremendous growth on Thursday. The S&P 500 index closed at 6141.02, with a jump of 0.8 percent, which is only a few points behind its all-time high of 6147.43. The Nasdaq Composite Index rose by 0.97 percent and closed at 20167.91. The Dow Jones Industrial Average also closed at 43386.84 with a gain of 404.41 points.
However, some concerns remain regarding the US economic situation. The country's GDP growth rate in the first quarter fell by 0.5 percent, which is more than the earlier estimate of 0.2 percent. A decrease in consumer spending and exports was the main reason for this.
Initial Signals in the Indian Market
At 6:35 am on Friday, GIFT Nifty Futures saw a rise of 112 points and was trading at 25727. This clearly indicates that the market may have a gap-up opening. That is, there is a possibility of the market opening at a higher level.
Investors' Focus on IPO Activities
Indian investors' eyes are now fixed on the launch of major IPOs like HDB Financial Services and Indogulf Developers. The potential IPOs of these companies will not only create a stir in the primary market but will also increase the activity of investors. This will increase liquidity in the market and also affect the direction of the Sensex and Nifty.
Market Relief from Middle East Stability
Recently, some softening has also been seen in the ongoing political tensions in the Middle East. The situation of the ongoing conflict between Iran and Israel, in particular, seems to have subsided for now. This stability has brought stability in international crude oil prices, which is good news for an import-dependent country like India. The stability in oil prices has a direct impact on Indian inflation and the current account deficit.
Foreign Exchange Reserves and Investors' Activities Will Also Be Important
Data for foreign exchange reserves for the week ending June 20 may be released today. If an increase is recorded in the reserves, it will indicate the strength of the rupee and the confidence of foreign investors. In addition, the buying and selling by institutional investors will also play an important role in determining the direction of the market.
