Overnight Developments Boost Indian Stock Market: Key Trends and Shifts

Indian Stock Market Expected to Open Lower Amid Rising Crude Oil Prices

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, as sentiment remains weak amid rising crude oil prices due to the blockade of the Strait of Hormuz. This comes after Asian markets traded higher, with Japan's Nikkei and South Korea's Kospi hitting record highs, while the US stock market also rallied overnight, sending S&P and Nasdaq to record closing highs.

On Wednesday, the Indian stock market suffered strong losses, snapping their three-session winning streak. The Sensex crashed 756.84 points, or 0.95%, to close at 78,516.49, while the Nifty 50 settled 198.50 points, or 0.81%, lower at 24,378.10. Market analysts expect Indian markets to consolidate in the near term as investors continue to monitor developments in the US-Iran conflict and the ongoing US blockade of the Strait of Hormuz.

Global Market Cues for Sensex Today

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Asian markets traded higher on Thursday, with Japan's Nikkei 225 rising 0.6% and reaching an all-time intraday high of 60,013.98. South Korea's Kospi also touched a record high of 6,538.72, advancing 1.75%. The Kosdaq gained 0.58%.

US Stock Market Rallies Overnight

The US stock market ended higher on Wednesday, with the S&P 500 and Nasdaq closing at record highs, led by optimism over the extension of the US-Iran ceasefire and solid corporate earnings. The Dow Jones Industrial Average gained 340.65 points, or 0.69%, to 49,490.03, while the S&P 500 rallied 73.89 points, or 1.05%, to 7,137.90. The Nasdaq Composite closed 397.60 points, or 1.64%, higher at 24,657.57.

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Key stock price movements in the US market included:

• Nvidia stock price rose 1.31%
• AMD shares jumped 6.67%
• Broadcom share price surged 5.09%
• Microsoft shares gained 2.07%
• Apple stock price rallied 2.63%
• Amazon share price rose 2.18%
• Tesla stock price added 0.28%

US-Iran War Escalates

Iran fired on three ships in the Strait of Hormuz and seized two of them, intensifying its assault on shipping in the key waterway. The attacks came a day after US President Donald Trump extended a ceasefire while maintaining an American blockade of Iranian ports.

Tesla Q1 Earnings Beat Estimates

Tesla's Q1 profits beat estimates and the EV maker confirmed plans for massive additional investments in autonomous transport, humanoid robotics, and artificial intelligence. Tesla's Q1 profits rose 17% YoY to $477 million, while revenues jumped 16% YoY to $22.39 billion.

RBI MPC Minutes

The Reserve Bank of India's rate-setting panel voted for the status quo on interest rates earlier this month, citing uncertainties posed by the US-Iran war and its impact on inflation, according to minutes of the Monetary Policy Committee (MPC). RBI Governor Sanjay Malhotra said that the West Asia conflict poses challenges to the Indian economy through a number of channels – exports, supply of critical commodities, elevated energy and other commodity prices, remittances, uncertainty, and subdued global demand.

Crude Oil Prices Jump

Crude oil prices jumped after Iran vowed not to reopen the Strait of Hormuz so long as a US naval blockade remained in place. Brent crude oil price rose 0.33% to $102.25 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 2.81% to $92.13.

Gold Price Remains Little Changed

Gold prices were little changed as the US extended the ceasefire with Iran. Spot gold price fell 0.3% to $4,727.65 an ounce, while silver price fell 0.3% to $77.48 an ounce.