Eight Global and Domestic Developments that Impacted Indian Stock Market Overnight
Indian Stock Market Expected to Open Lower Amid Global Uncertainty
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday following mixed cues from global markets. The renewed escalation of US-Iran war in the Middle East has lowered the prospects of any ceasefire deal, casting a shadow on the Indian stock market.
Asian markets traded mixed on Wednesday, with Japan's Nikkei 225 hitting a record high. Japan's Nikkei 225 jumped 2.17%, while the Topix rallied 0.93%. Hong Kong's Hang Seng index futures indicated a lower opening. South Korea's markets were closed for a holiday.
| Market | Change |
|---|---|
| Nikkei 225 | 2.17% |
| Topix | 0.93% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
On Tuesday, the Indian stock market ended higher, snapping its four-day losing streak, led by gains in IT heavyweights and value buying. The Sensex gained 382.50 points, or 0.52%, to close at 74,649.84, while the Nifty 50 settled 100.95 points, or 0.43%, higher at 23,483.55.
The global market cues for the Sensex today are mixed, with the US stock market ending marginally higher overnight amid tensions arising from US-Iran talks. The Dow Jones Industrial Average gained 228.91 points, or 0.45%, to 51,307.79, while the S&P 500 rose 9.94 points, or 0.13%, to 7,609.90.
| US Stock Market | Change |
|---|---|
| Dow Jones | 0.45% |
| S&P 500 | 0.13% |
In other news, US job openings increased by the most in five years in April, with the Job Openings and Labor Turnover Survey, or JOLTS report, showing that the job openings had surged by 731,000 to 7.618 million by the last day of April. Crude oil prices gained as fighting flared up in the Middle East, diminishing the prospects of the US-Iran peace deal. Brent crude oil price rallied 1.13% to $97.08 a barrel, while the US West Texas Intermediate (WTI) crude gained 1.24% to $94.92.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Job Openings | April 2024 |
|---|---|
| Total Job Openings | 7,618,000 |
| Increase in Job Openings | 731,000 |
| Crude Oil Prices | Change |
|---|---|
| Brent Crude | 1.13% |
| WTI Crude | 1.24% |
Gold prices fell after US jobs data reinforced bets that the Federal Reserve will keep interest rates higher for longer. Spot gold price declined 0.4% to $4,469.13 an ounce, while silver prices shed 0.9% to $74.44 an ounce. The dollar traded in a narrow range, with the dollar index rising 0.046% at 99.216.
Investor Takeaway
Investors should remain cautious and focus on rate-sensitive sectors in the near term.
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