The BSE Sensex rose 387 points, or 0.5%, to 81,752 in early trade on Friday, halting losses from the previous two sessions. The Nifty 50 also climbed 0.5% to trade above 24,900. The gains followed news that US President Donald Trump postponed a decision on US involvement in the Israel-Iran conflict by two weeks. All sectors traded in the green, led by financials, healthcare, and auto. Small-cap and mid-cap indices also advanced, rising 0.4% and 0.3%, respectively. However, traders remained cautious ahead of the RBI's monetary policy meeting minutes due later today, looking for clues on the future interest rate path amid easing inflation. Among early gainers were Mahindra & Mahindra (2.5%), Bharti Airtel (1.7%), Power Grid (1.6%), Reliance Industries (1.1%), and Nestle India (1.0%). For the week, the index is on track for a 0.8% gain, recovering from losses in the previous week, supported by strong domestic economic data.
Dow added 35 points as investors weighed the prospects of Federal Reserve rate cuts against rising geopolitical tensions in the Middle East. Fed Governor Waller’s suggestion that rate cuts could arrive as early as July contrasted sharply with Chair Powell’s more cautious, data-dependent stance. Semiconductor stocks like Nvidia and TSMC, dropped over 1% following reports that the US may revoke export waivers, raising concerns over global chip supply chains. Geopolitical uncertainty deepened after President Trump delayed a decision on potential US military involvement in the Israel-Iran conflict, even as Israel intensified its strikes on key Iranian targets. Friday’s “triple witching” expiration added volatility, prompting a rebound in shorter-dated Treasuries and driving two-year yields down four basis points. On the week, the S&P 500 fell 0.2%, while the Dow was flat and Nasdaq added 0.2%.
