Indian Stocks React to Overnight Developments: US-Iran Tensions, Trump Tariffs, and Global Market Shifts
Indian Stock Market Expected to Open Lower on Friday Amid Global Market Weakness
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Friday, following weakness in global markets, as renewed escalation in the US-Iran war raised uncertainty over the peace talks. Asian markets declined, while the US stock market ended lower overnight, weighed down by profit booking in tech stocks after the recent rally.
On Thursday, the Indian stock market ended with minor losses amid profit booking in a volatile session. The Sensex declined 114.00 points, or 0.15%, to close at 77,844.52, while the Nifty 50 settled 4.30 points, or 0.02%, lower at 24,326.65. According to Ajit Mishra, SVP, Research, Religare Broking Ltd., the noticeable traction across sectors is offering ample trading opportunities, and therefore, a stock-specific approach across sectors is preferred while remaining selective and avoiding the relatively weaker IT space.
Global Market Cues for Sensex Today
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Market | Change |
|---|---|
| Japan's Nikkei 225 | -0.36% |
| Japan's Topix | -0.67% |
| South Korea's Kospi | -1.01% |
| South Korea's Kosdaq | 0.56% |
| Hong Kong Hang Seng index futures | Lower opening |
Asian markets traded lower on Friday amid concerns over renewed hostilities between the US and Iran in the Strait of Hormuz. The US-Iran war in the Middle East escalated as the US struck military targets in Iran after the country fired on three Navy destroyers sailing in the Strait of Hormuz. Iran said the situation returned to normal while the US said it did not want to escalate.
US Market Cues
| Index | Change |
|---|---|
| Dow Jones Industrial Average | -0.63% |
| S&P 500 | -0.38% |
| Nasdaq | -0.13% |
| Nvidia stock price | +1.85% |
| Microsoft shares | +1.70% |
| AMD stock price | -3.09% |
| Intel share price | -3.00% |
| Amazon shares | -1.38% |
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
The US stock market ended lower on Thursday amid uncertainty around US-Iran peace talks. The dollar was firm against most major currencies, with the dollar index measured against key peers at 98.235, according to Reuters. Gold prices traded higher and were headed for a weekly gain on easing fears of inflation and higher interest rates. Spot gold price rose 0.3% to $4,700.80 per ounce, while crude oil prices traded higher, with Brent crude oil price rallying 1.36% to $101.42 a barrel.
Investor Takeaway
Investors should remain selective and avoid the relatively weaker IT space.
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