Global Markets Drive Indian Stocks: Overnight Trends and Key Developments

Indian Stock Market to Open Cautiously Amid Global Uncertainty

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Wednesday, following mixed global market cues, amid uncertainty over the US-Iran peace deal. Asian markets traded higher, while the US stock market ended mixed overnight, with the S&P 500 and Nasdaq hitting record closing highs.

On Tuesday, the Indian stock market ended lower, snapping its two-day winning run, due to profit booking and a jump in crude oil prices. The Sensex declined 479.26 points, or 0.63%, to close at 76,009.70, while the Nifty 50 settled 118.00 points, or 0.49%, lower at 23,913.70.

Markets continue to remain resilient despite elevated global uncertainty, supported by strong domestic liquidity and selective buying in broader markets. However, persistent geopolitical tensions in West Asia, inflationary concerns, and mixed signals from the ongoing US-Iran negotiations are likely to keep investor sentiment cautious and market volatility elevated in the near term.

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Global Market Cues

Asian markets traded mostly higher on Wednesday, with Japan and South Korea's benchmark indices hitting new highs. MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.2%. Japan's Nikkei 225 rallied 1.49% to a fresh record high, while the Topix gained 0.57%. South Korea's Kospi jumped 4.84%, while the Kosdaq fell 0.68%.

US Stock Market

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The US stock market ended mixed on Tuesday, with the S&P 500 and Nasdaq hitting record closing highs, led by a rally in semiconductor stocks amid AI-fueled optimism. The Dow Jones Industrial Average fell 118.02 points, or 0.23%, to 50,461.68, while the S&P 500 gained 45.65 points, or 0.61%, to 7,519.12. The Nasdaq Composite closed 312.21 points, or 1.19%, higher at 26,656.18.

US-Iran War and Crude Oil Prices

Iran said the US had violated a ceasefire by striking targets near the contested Strait of Hormuz. Meanwhile, Israel pounded Lebanon with more than 120 air strikes in one of the heaviest days of bombing in weeks, Reuters reported. Iran has sought an end to Israeli attacks in Lebanon as part of any deal. Crude oil prices fell as the US touted progress toward a peace deal with Iran. Brent oil prices fell 0.54% to $99.04 a barrel after rising almost 4% on Tuesday, while West Texas Intermediate crude declined 0.72% to $93.21 a barrel.

Gold Rate and Dollar

Gold prices rose, supported by a weaker dollar, amid signs of progress in US-Iran peace talks. Spot gold price gained 0.2% to $4,516.76 per ounce, while US gold futures for June delivery rose 0.3% to $4,516.30. Spot silver price gained 0.6% to $77.40 per ounce. The safe-haven dollar was steady after edging higher against major peers a day earlier. The dollar index, which measures the currency against the yen and five other rivals, was little changed at 99.087 after adding 0.15% on Tuesday.