Overnight Developments: Key Market Indicators Shift in US and Global Markets

Indian Stock Market Expected to Open Flat on Wednesday

The Indian stock market benchmark indices, Sensex and Nifty 50, are anticipated to open flat on Wednesday, following mixed cues from global markets. Asian markets have fallen, while the US stock market ended lower, with the Nasdaq suffering its biggest daily percentage loss in a month.

On Tuesday, the Indian stock market ended lower, weighed down by profit booking in banking heavyweights. The Sensex declined 416.72 points, or 0.54%, to close at 76,886.91, while the Nifty 50 settled 97.00 points, or 0.40%, lower at 23,995.70.

Religare Broking Ltd's Ajit Mishra, SVP, Research, recommends maintaining a cautious stance on the index and continuing with a sector- and theme-specific approach. The company's preference remains for energy, metals, capital market, and pharma stocks for long positions, while keeping position sizes in check.

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Global Market Cues for Sensex Today

Asian markets traded mixed on Wednesday, following overnight losses on Wall Street. South Korea's Kospi declined 0.39%, while the Kosdaq traded flat. Hong Kong's Hang Seng index futures indicated a higher opening. Japan markets are closed for a holiday.

The US stock market ended lower on Tuesday, as renewed concerns over the artificial intelligence boom weighed on technology stocks. The Dow Jones Industrial Average fell 25.86 points, or 0.05%, to 49,141.93, while the S&P 500 declined 35.11 points, or 0.49%, to 7,138.80. The Nasdaq Composite closed 223.30 points, or 0.90%, lower at 24,663.80.

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Key technology stocks, including Nvidia, AMD, and Broadcom, dropped between 1.6% and 4.4%. CoreWeave shares slid 5.8%, and Oracle stock price declined 4.1%. Microsoft share price gained 1.04%, Apple stock price rose 1.15%, while Tesla stock price fell 0.70%.

Global Economic Developments

US President Donald Trump has instructed aides to prepare for an extended blockade of Iran, the Wall Street Journal reported on Tuesday, citing US officials. The United Arab Emirates announced that it was quitting the Organisation of the Petroleum Exporting Countries (OPEC), effective May 1. Energy Minister Suhail Mohamed al-Mazrouei clarified that the UAE chose to withdraw from OPEC at a time when the move would have minimal impact on other oil-producing members of the group.

Commodity Prices

Gold prices were steady as investors awaited US Federal Reserve Chair Jerome Powell's comments amid stalled peace talks. Spot gold price rose 0.1% to $4,598.45 per ounce, while US gold futures for June delivery gained 0.1% to $4,612.10. Spot silver price rose 0.1% to $73.12 per ounce.

Crude oil prices rose as investors focused on the next steps for US-Iran peace talks. Brent crude oil price rose 0.31% to $111.60 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.19% to $100.12.

The dollar firmed ahead of the US Federal Reserve's interest rate decision. Against a basket of currencies, the dollar held to a small overnight gain and steadied at 98.57. The euro last bought $1.1716 while sterling was little changed at $1.3523. The Japanese yen was last little changed at 159.55 against the dollar.