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Indian markets are likely to open on a positive note on Monday, June 16
Stock Market Today
Sensex Today: Indian markets are likely to open on a positive note on Monday, June 16, supported by early cues from GIFT Nifty futures, which were trading 78 points higher at 24,805 around 8:30 AM. However, investor sentiment may remain cautious due to a mix of geopolitical tensions, macroeconomic data, and global equity trends that continue to influence market direction.
Back home, market participants will closely watch the release of India’s Wholesale Price Index (WPI) inflation data for May, which will offer insights into wholesale pricing pressures and broader inflation trends. This comes against the backdrop of rising global commodity prices and volatility in the energy markets.
Geopolitical developments in the Middle East remain a major overhang for markets. Over the weekend, Israeli drones reportedly struck Iran’s South Pars gas field—one of the largest globally—damaging two natural gas processing units. Iran, in retaliation, launched missiles that hit a major oil refinery in the Israeli city of Haifa. Israel is also believed to have targeted a major oil depot near Tehran. With both sides escalating their military actions, fears of wider regional instability have deepened. A senior Iranian commander has even warned that Tehran may consider shutting down the Strait of Hormuz, a critical chokepoint through which nearly a fifth of global oil shipments pass, raising serious concerns about global energy supply disruptions.
These geopolitical concerns have led to sharp movements in global commodities. Crude oil prices surged, with the West Texas Intermediate (WTI) benchmark rising over 8.5%, while gold prices rallied as investors sought safe-haven assets amid market uncertainty. The rise in oil prices is likely to impact India’s import bill and inflation outlook, potentially influencing rate expectations and sector-specific stock performance.
Global Cues
On the global front, Asia-Pacific markets traded higher in early Monday trade as investors digested the escalating Middle East conflict and key economic data from China. Japan’s Nikkei was up 0.94%, Topix gained 0.97%, South Korea’s Kospi rose 0.14%, and Australia’s ASX 200 edged up 0.23%. The uptick in Asian equities was supported in part by China’s latest macro data. Retail sales in China grew by 6.4% year-on-year in May, marking the fastest pace since December 2023 and beating April’s 5.1% rise. However, industrial production growth slowed to 5.8% from 6.1%, falling short of market expectations.
Meanwhile, US markets ended sharply lower on Friday as the intensifying geopolitical crisis and spiking energy prices dampened investor sentiment. The Dow Jones Industrial Average plunged 1.79%, the S\&P 500 lost 1.13%, and the tech-heavy Nasdaq shed 1.30%. US equity futures were trading slightly higher during early Asia hours, suggesting some stabilization could emerge in global equities depending on further developments in the Israel-Iran conflict.
As the week begins, investors will remain focused on institutional flows, sectoral cues, and the direction of crude oil prices. With multiple headwinds in play, especially in the form of geopolitical risk and uneven global economic data, market volatility may stay elevated in the near term.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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