Indian stock market: 10 key things that changed for market overnight - Gift Nifty, Israel-Iran news to crude oil prices

By Admin

24 Jun, 2025

The Indian stock market is expected to open on a strong note today, thanks to positive global cues, including easing geopolitical tensions and the rising hope of a US Fed interest rate cut. After Monday’s sharp fall triggered by the ongoing Israel-Iran conflict, a ceasefire announcement from US President Donald Trump has helped calm global sentiment.

Here are 10 key developments that have reshaped market sentiment overnight:

1. Gift Nifty Points to a Gap-Up Start

Gift Nifty was trading around 25,175, nearly 181 points above the Nifty futures’ previous close. This indicates a strong gap-up opening for Indian indices like the Sensex and Nifty 50, setting an optimistic tone for the day.

2. Israel-Iran Ceasefire Announced

US President Donald Trump declared a “Complete and Total CEASEFIRE” between Israel and Iran, potentially ending the 12-day war. However, Iran's Supreme Leader Ayatollah Khamenei dismissed any notion of surrender, especially after retaliatory missile strikes on a US base in Qatar. While tensions may not be fully over, this development significantly improves market confidence.

3. Asian Markets Rally

Buoyed by the ceasefire news, Asian markets surged. Japan’s Nikkei 225 rose 1.59%, Kospi jumped 2.09%, and Hang Seng hinted at a higher opening. This reflects a risk-on sentiment across the region, benefiting Indian equities as well.

4. US Markets End Strong

Wall Street closed higher on Monday as investors bet on a possible interest rate cut by the US Fed in July. The Dow Jones gained 374.96 points, S&P 500 climbed 0.96%, and Nasdaq advanced 0.94%. Key stocks like Tesla (+8.2%) and Fiserv (+4.4%) posted notable gains.

5. Crude Oil Prices Tumble

Crude oil prices fell sharply as ceasefire hopes reduced geopolitical risk. Brent Crude dropped 3.78% to $68.78, while WTI Crude slumped 3.88% to $65.85 their lowest levels in over a week. This drop is good news for India, a net importer of oil, and could ease inflation concerns.

6. Gold Prices Slip

With risk sentiment improving, demand for safe-haven assets like gold declined. Spot gold fell 0.6% to $3,349.89 an ounce, and US gold futures dropped 0.9%. This reflects investor shift from caution to opportunity.

7. Dollar Weakens

The US dollar fell against major currencies following the ceasefire news. The yen rose as the dollar dipped to 145.79, while the euro and pound sterling advanced to $1.1602 and $1.3551 respectively.

8. US Treasury Yields Fall

In anticipation of a Fed rate cut, bond yields dipped. The 2-year Treasury yield fell 5.7 bps to 3.851%, while the 10-year yield eased to 4.34%. These moves indicate increasing confidence that a looser monetary policy is on the horizon.

9. Mixed US PMI Data

US business activity saw a slight slowdown in June. The Composite PMI fell to 52.8, and Services PMI dipped to 53.1. However, these levels still signal expansion. This mixed economic signal supports the Fed’s case for a rate cut.

10. Market Strategy – Caution with Optimism

According to Ajit Mishra, SVP at Religare Broking Ltd, investors should adopt a selective approach. In the absence of domestic triggers, global cues and crude oil movements will dominate market trends. He recommends stock picking based on relative strength during this consolidation phase.

Final Thoughts

The overnight changes from geopolitical developments to commodity price corrections have set the stage for a positive start in Indian markets. With Gift Nifty indicating a rally and easing oil prices providing macro support, investors can look forward to some recovery. However, caution is warranted as volatility may persist until the ceasefire holds firm and the Fed's next steps become clearer.