Stock market today: Gift Nifty hints muted start; eight day trading stocks to buy on Thursday, 16 July

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note on Thursday, 16 July, tracking mixed global cues as investors assess the impact of the escalating US-Iran conflict and persistently high crude oil prices.

Asian markets traded lower in early deals, while Wall Street ended higher overnight as softer US economic data supported sentiment despite continued geopolitical uncertainty in the Middle East.

On Wednesday, Indian equities ended marginally higher, aided by positive global cues and selective buying across sectors. The BSE Sensex gained 130.49 points, or 0.17%, to close at 77,185.43, while the Nifty 50 advanced 26.45 points, or 0.11%, to settle at 24,078.50.

Geopolitical tensions remained elevated after the United States carried out another round of strikes targeting Iranian military infrastructure allegedly used to threaten commercial shipping through the Strait of Hormuz. In response, Iran's Revolutionary Guards reiterated that the strategic waterway would remain closed until the US ends what it described as "acts of aggression" and warned that other regional oil export routes could also come under threat.

US producer prices unexpectedly declined in June, offering fresh signs that inflationary pressures may be easing. The Producer Price Index (PPI) for final demand fell 0.3% month-on-month, the sharpest drop since April 2025, following a downwardly revised 0.6% increase in May. Economists polled by Reuters had expected producer prices to remain unchanged.

Crude oil prices extended their rally for a fourth consecutive session as renewed military action in the Middle East intensified concerns over potential supply disruptions. Brent crude rose 0.4% to $85.28 a barrel, while WTI crude gained 0.5% to $80.02 a barrel.

Gold prices traded largely flat as softer US inflation indicators strengthened expectations that the Federal Reserve may adopt a less aggressive monetary policy stance. Spot gold was little changed at $4,056.59 per ounce, while US gold futures for August delivery rose 0.3% to $4,062.50. Spot silver slipped 0.3% to $57.61 per ounce.

The Gift Nifty Live Chart shows a muted start for the Indian stock market today. By 7:41 AM, the Gift Nifty was trading around the 24,055.5 level, a discount of 12.3 points from the Nifty futures’ previous close of 24,067.80.

Ponmudi R, CEO of Enrich Money, said Indian markets are expected to trade with a cautious bias despite indications of a mildly positive opening, as elevated crude oil prices, persistent weakness in the Indian rupee, and escalating geopolitical tensions between the United States and Iran are likely to cap near-term upside. Gift Nifty is currently trading around 24,120, compared with the Nifty's previous close of 24,078.50, signalling a marginally positive start. However, investors are likely to refrain from taking aggressive directional positions until there is greater clarity on the evolving geopolitical situation.

Global cues remain mixed. Wall Street ended higher overnight after softer-than-expected US inflation data reinforced expectations that the Federal Reserve may adopt a less hawkish monetary policy stance. A stronger-than-expected start to the US earnings season also supported investor sentiment. In contrast, Asian markets are trading sharply lower, with Japan's Nikkei 225 declining more than 3% and South Korea's Kospi falling over 6% in early trade, reflecting renewed concerns over the escalating Middle East conflict and its potential impact on global growth.

Speaking on the outlook for the Nifty 50 today, Ajit Mishra, Senior Vice President, Research at Religare Broking, said technically, the tug of war between bulls and bears continues to keep the benchmark index range-bound. However, rotational buying across sectors and the resilience of the broader markets continue to offer ample stock-specific trading opportunities. We therefore maintain our "buy-on-dips" approach, with a preference for re...