Stock Market Updates: GIFT Nifty Signals Negative Start; China Holds Lending Rates
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Benchmark indices Sensex and Nifty are expected to be influenced today by a mix of global and domestic factors
Sensex Today: Benchmark indices Sensex and Nifty are expected to be influenced today by a mix of global and domestic factors, including Japan's inflation data, China's loan prime rate decision, escalating tensions between Israel and Iran, India's forex reserves update, and institutional activity.
As of 8:40 AM, GIFT Nifty futures were trading 25 points lower at 24,778.5, hinting at a weak start for domestic equities.
Global Market Cues
Asia-Pacific markets showed mixed trends on Friday as investors reacted to China's key lending rate announcements and tracked mounting geopolitical tension in the Middle East.
The People's Bank of China (PBoC) held its one-year loan prime rate steady at 3.0% and the five-year rate at 3.5%, matching market expectations.
Geopolitical risks remained elevated, with U.S. President Donald Trump reportedly weighing support for possible Israeli military action against Tehran. A decision from the White House is expected within two weeks.
In Japan, the Nikkei was last up 0.27%, while the broader Topix index was flat. Core inflation in Japan rose to 3.7% in May — its highest since January 2023 — surpassing April's 3.5% reading and Reuters' forecast of 3.6%. Meanwhile, headline inflation slightly eased to 3.5% from 3.6% in the previous two months, marking its lowest level since November.
Elsewhere in Asia, South Korea's Kospi slipped into the red after early gains, down 0.014%, while Australia's ASX 200 also reversed its opening strength, falling 0.37%.
Meanwhile, the Bank of England, at its June policy meeting, voted 6-3 to hold the Bank Rate steady at 4.25%, as it continues to deal with sticky inflation and global macroeconomic uncertainty.
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