India's Stock Market Sees Significant Shifts: Overnight Developments and Their Impact

Indian Stock Market Expected to Open Lower on Tuesday Amid Global Market Weakness

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Tuesday following weakness in global markets. The escalation of the US-Iran war has dented sentiment, with Asian markets trading lower and the US stock market declining overnight.

The Sensex gained 355.90 points, or 0.46%, to close at 77,269.40 on Monday, while the Nifty 50 settled 121.75 points, or 0.51%, higher at 24,119.30. However, the market pared early gains amid profit-taking and ended higher due to a sector- and theme-specific approach and hedged strategies.

Global Market Cues

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Asian markets looked set to retreat from record highs amid concerns that Middle East tensions could escalate again. Equity-index futures pointed to losses in Australia and Taiwan at the open. Markets in Japan, South Korea, and mainland China are closed.

US Stock Market Performance

The US stock market ended lower on Monday as escalating war in the Middle East dampened optimism about strong first-quarter earnings reports. The Dow Jones Industrial Average declined 1.13% to 48,941.90, while the S&P 500 dropped 0.41% to end at 7,200.75. The Nasdaq closed 0.19% lower at 25,067.80.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Key Stock Performances

The US-Iran war in the Middle East escalated after both countries exchanged fire on Monday, drawing in the United Arab Emirates and prompting calls for renewed strikes on Iranian targets. The US military said it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones as Tehran sought to thwart a new US naval effort to open shipping through the Strait of Hormuz.

Assembly Election Results

The BJP is set to form government with a huge majority in West Bengal and Assam, while in Kerala, Congress-led UDF has secured a decisive victory. In Tamil Nadu, the Vijay's TVK has secured 107 seats, pushing incumbent CM Stalin-led DMK to the third position.

Crude Oil Prices

Crude oil prices eased after climbing by as much as 6% in the previous session. Brent oil futures for July fell 0.6% to $113.76 per barrel, after settling up 5.8% on Monday. US West Texas Intermediate (WTI) crude fell 1.5% to $104.83, after gaining 4.4% in the previous session.

Gold Rate and Dollar Index

Gold prices were largely steady as renewed escalation in US-Iran war fueled inflation and rate-hike risks. Spot gold price rose 0.2% to $4,528.99 per ounce, while US gold futures for June delivery rose 0.1% to $4,538.20. The dollar index, which measures the US currency against six units, was steady at 98.452 after rising 0.3% on Monday.