Summary of this article
Gift Nifty above 24,100 suggests a flat-to-positive start for Indian markets
Asian markets jumped after Micron's strong forecast boosted AI-related stocks
Falling oil prices and easing tensions improved overall market sentiment
Stock Market Today: Benchmark indices are likely to open higher on June 25, with Gift Nifty trading above the 24,100 mark, signalling a flat-to-positive start, as a sharp rebound across Asian markets lifted global sentiment.
Investor sentiment in the region improved after US memory chipmaker Micron Technology issued a stronger-than-expected sales forecast, reviving optimism around the artificial intelligence (AI) theme and lifting technology stocks across Asia.
Domestic markets will also head into a long weekend, with trading set to remain shut on Friday, June 26 on account of Muharram.
Asian Markets Rally
Asian equities witnessed strong buying in early trade on June 25, led by gains in South Korean technology stocks. South Korea's Kospi surged nearly 5 per cent in early trade, while the broader MSCI Asia Pacific Index climbed more than 1 per cent.
Japan's benchmark Nikkei 225 rose 1.30 per cent and the broader Topix gained 0.80 per cent. China’s CSI 300 was up by 0.70 per cent, while the Hong Kong-based Hang Seng was down by around 1.30 per cent.
The rally came after the US-based Micron Technology projected quarterly revenue well above market estimates, suggesting that the boom in AI-related spending and data centre investments is still intact.
Micron shares jumped nearly 15 per cent in after-hours trading in the US. The upbeat outlook also lifted Asian semiconductor companies. SK Hynix surged over 10 per cent, while Samsung Electronics gained around 5 per cent.
The renewed interest in AI-linked stocks comes after a weak start to the week for global technology shares amid concerns over high valuations.
US Stocks End Mixed
Wall Street ended on a mixed note overnight. Technology stocks were under pressure due to valuation concerns, dragging the Nasdaq and S&P 500 lower.
The Dow Jones Industrial Average rose 0.35 per cent, the S&P 500 declined 0.10 per cent, while the Nasdaq Composite fell 0.43 per cent.
Oil Prices Ease
Lower crude oil prices also supported investor sentiment. Brent crude extended losses after falling more than 4 per cent in the previous session and slipped below the $73 per barrel mark.
The international benchmark Brent crude oil futures slipped 1.26 per cent to $72.94 per barrel, almost near the pre-Iran war level. The US West Texas Intermediate also declined 1.41 per cent to $69.35 per barrel.
The decline came as signs of rising supply and progress in talks between US and Iran for a peace agreement. Softer oil prices are seen as positive for oil-importing economies such as India as they help ease inflationary pressures and reduce concerns over the current account deficit.
