Nasdaq and Kospi Bounce, US-Iran Talks and Global Developments Impact Indian Equities Overnight

Indian Stock Market Expected to Open Higher Amid Global Rally

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following a rally in global markets, amid hopes of a US-Iran peace deal. Asian markets gained, while the US stock market ended higher overnight, with the S&P 500 and Nasdaq posting record closing highs.

On Tuesday, the Indian stock market ended lower, largely due to profit booking in select banking and financial heavyweights. The Sensex declined 251.61 points, or 0.33%, to close at 77,017.79, while the Nifty 50 settled 86.50 points, or 0.36%, lower at 24,032.80. Despite this decline, analysts expect the Nifty 50 to consolidate in the near term, with markets likely to remain sensitive to developments in West Asia.

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Asian markets traded higher, following an overnight rally on Wall Street. South Korea's Kospi rallied 5.4% to scale a new peak, while Kosdaq fell 0.15%. Hong Kong Hang Seng index futures indicated a lower opening. Japan's stock market is closed for a holiday.

Gift Nifty was trading around 24,306 level, a premium of nearly 200 points from the Nifty futures' previous close, indicating a gap-up start for the Indian stock market indices.

The US stock market ended higher on Tuesday, with the S&P 500 and Nasdaq notching record high closes, as a US-Iran ceasefire held firm and investors focused on strong quarterly earnings. The Dow Jones Industrial Average gained 0.73% to 49,298.25, while the S&P 500 rallied 0.81% to end at 7,259.22. The Nasdaq closed 1.03% higher at 25,326.13.

US President Donald Trump said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing "great progress" toward a comprehensive agreement with Iran. This move has led to a decline in crude prices, with Brent crude futures for July falling 1.38% to $108.35 per barrel, and US benchmark West Texas Intermediate futures for June declining 1.47% to $100.77.

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

US job openings slipped in March amid a decline in professional and business services. Job openings, a measure of labor demand, were down 56,000 to 6.866 million by the last day of March, the JOLTS report showed. Economists polled by Reuters had forecast 6.835 million unfilled jobs.

The Institute for Supply Management's Non-Manufacturing Purchasing Managers' Index for April came in at 53.6, narrowly missing the estimate of 53.7, according to economists polled by Reuters. US Treasury yields fell along with a decline in crude prices, with the yield on the benchmark US 10-year Treasury note falling 3 basis points to 4.416%.

Gold prices rallied, buoyed by a weaker dollar, while lower oil prices eased inflation fears. Spot gold price rose 1.3% to $4,617.19 per ounce, while US gold futures for June delivery gained 1.4% to $4,631.30. Spot silver price surged 2.4% to $74.60 per ounce.

The dollar retreated against most major currencies, with the dollar index falling 0.01% to 98.299. Against the yen, the dollar traded at 157.62 yen, down 0.17%. The euro stood at $1.1714 and sterling traded at $1.35685, both up roughly 0.2% so far on the day.