Global Developments Impact Indian Stock Market: Overnight Shifts in Oil Prices, US-Iran Tensions, and Other Key Factors
Indian Stock Market Expected to Open Lower Amid Global Market Volatility
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday following a decline in investor sentiment after US President Donald Trump's address, in which he stated that US forces will hit Iran "very hard" for the next 2-3 weeks. Despite Asian markets trading higher and the US stock market ending with gains overnight, led by a rally in index heavyweight stocks, the Indian stock market snapped its two-day losing run on Wednesday and ended with strong gains.
On Wednesday, the Sensex jumped 1,186.77 points, or 1.65%, to close at 73,134.32, while the Nifty 50 settled 348.00 points, or 1.56%, higher at 22,679.40. The continuation of yesterday's recovery will hinge on the progress and sustainability of de-escalation in the West Asia conflict. Markets are likely to remain sensitive to incoming signals, and sustained easing of geopolitical tensions, alongside stability in crude prices, currency trends, and institutional flows, will be crucial in determining the durability of the recovery.
Global Market Cues for Sensex
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Market | Overnight Change |
|---|---|
| Japan's Nikkei 225 | 0.78% |
| Topix | 1.01% |
| South Korea's Kospi | 1.33% |
| Kosdaq | 1.14% |
| Hong Kong's Hang Seng index futures | Marginally higher |
Asian markets traded higher on Thursday, following an overnight rally on Wall Street amid hopes that the US is looking to exit the Iran war. The Indian stock market indices are expected to open lower, with Gift Nifty trading around 22,500 level, a discount of nearly 300 points from the Nifty futures' previous close, indicating a gap-down start.
US Stock Market
The US stock market ended higher on Wednesday, led by index heavyweights, after President Donald Trump suggested an end to the Iran war could be close. The Dow Jones Industrial Average rallied 0.48% to 46,565.74, while the S&P 500 gained 0.72% to end the session at 6,575.32. The Nasdaq closed 1.16% higher at 21,840.95.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Key index heavyweights that rallied include:
- Nvidia stock price rose 0.75%
- AMD shares gained 3.33%
- Alphabet share price advanced 2.79%
- Tesla stock price rallied 2.79%
- Intel share price spiked 8.8%
- Intuitive Machines shares jumped 9%
- Planet Labs stock surged 10%
- Rocket Lab added 2%
- Eli Lilly stock price rallied 3.8%
Crude Oil Prices and Gold Rate
Crude oil prices rose after US President Donald Trump's remarks on the Iran war. Brent crude oil price gained 1.45% to $103.00 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 0.91% to $101.34. Gold prices rose to a two-week high, supported by a weaker dollar and signs of de-escalation in the US-Iran war. Spot gold price gained 0.7% to $4,790.29 per ounce, the highest level since March 19.
Currency Market
Major currencies were steady in thin trading on Thursday. The dollar index, which measures the currency against a basket of currencies, was little changed at 99.56 after a 0.3% decline on Wednesday. The Japanese yen traded at 158.64. The euro stood at $1.1592 and the sterling fetched $1.3308, both scarcely changed versus the dollar.
Investor Takeaway
Investors should remain cautious and monitor geopolitical tensions and oil prices for potential market impact.
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