Global Markets Impact Indian Stocks Overnight: Key Developments

Global Market Cues Support Indian Stock Market Benchmark Indices

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a bullish note on Thursday, supported by strong global market cues amid easing geopolitical anxiety. Asian markets traded higher, while the US stock market rallied overnight, with all three Wall Street indices rallying over 1% each, amid growing hopes that the US-Iran war could end soon.

On Wednesday, the Indian stock market ended marginally higher, supported by gains in select index heavyweights. The Sensex rose 117.54 points, or 0.16%, to close at 75,318.39, while the Nifty 50 settled 41.00 points, or 0.17%, higher at 23,659.00. Rotational buying in select heavyweight stocks across sectors is helping limit the downside, with the Nifty 50 index finding support in the 23,250 – 23,400 zone so far.

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Global market cues suggest a positive start for the Indian stock market indices. Gift Nifty was trading around 23,810 level, a premium of nearly 142 points from the Nifty futures' previous close. The US stock market ended higher on Wednesday, bouncing back from a three-day selloff, led by a rally in chip stocks. The Dow Jones Industrial Average rallied 645.47 points, or 1.31%, to 50,009.35, while the S&P 500 gained 79.36 points, or 1.08%, to 7,432.97.

The rally in the US stock market was driven by gains in chip stocks, with Nvidia stock price rising 1.30%, AMD shares jumping 8.10%, Microsoft share price gaining 0.87%, Amazon shares surging 2.19%, Apple stock price advancing 1.10%, Intel shares spiking 7.36%, and Micron Technology shares rallying 4.76%. Tesla stock price added 3.25%. Delta Air Lines, United Airlines, Southwest Airlines, and Alaska Air jumped between 6% and 10%.

The US-Iran war has been a major concern for global markets in recent times. US President Donald Trump said negotiations with Iran were in the final stages but warned of further attacks unless Iran agreed to a deal, adding that Washington could wait a few days to "get the right answers." Iran warned against renewed attacks.

The US Federal Reserve's April meeting minutes showed a majority of Fed policymakers felt "some policy firming would likely become appropriate" if inflation stays persistently above the central bank's 2% target. Nvidia's Q1 net profit jumped to $58.3 billion, or $2.39 per share, more than tripling from $18.8 billion in the year-earlier period. The company posted record revenue of $81.62 billion, a surge of 85% from $44.01 billion, YoY.

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US Treasury yields fell sharply overnight after President Donald Trump said peace deal talks with Iran were in their final stage. The yield on benchmark US 10-year notes fell 9.4 basis points to 4.576%. Japanese government bonds (JGBs) rose for a second straight day. The yield on the 10-year JGB eased 3.5 bps to 2.750%, and the yield on the 30-year JGB dropped 8.5 bps to 4.015%.

The US dollar hovered below a six-week peak. The dollar index, which measures the currency against the euro, yen, and four other rivals, was flat at 99.128. The euro was steady at $1.1626, and Sterling was little changed at $1.3430. The dollar was down slightly at 158.905 yen.

Gold prices held steady amid optimism around a potential US-Iran peace deal. Spot gold price was unchanged at $4,543.96 per ounce, while US gold futures for June delivery gained 0.2% to $4,545.50. Spot silver price was steady at $75.96 per ounce.

Crude oil prices rebounded after two days of losses. Brent crude futures rose 0.45% to $105.49 a barrel, and while US West Texas Intermediate crude traded near $99.