Overnight Market Developments: Key Factors Impacting Indian Stocks

Indian Stock Market Expected to Open Cautiously Amid Global Market Uncertainty

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note on Tuesday following mixed cues from global markets. Asian markets traded mixed, while the US stock market ended mostly lower overnight, amid profit-booking in technology stocks.

On Monday, the Indian stock market ended flat with a positive bias, staging a smart rebound from the day's lows, amid buying in select heavyweights. The Sensex closed 77.05 points, or 0.10%, higher at 75,315.04, while the Nifty 50 settled 6.45 points, or 0.03%, higher at 23,649.95.

Key Global Market Cues

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According to Ajit Mishra, SVP, Research, Religare Broking Ltd, while signals from key sectors such as banking and IT remain mixed, a stock-specific approach is recommended. Traders may focus on sectors like pharma, healthcare, energy, and metals for long opportunities, while crude-sensitive and rate-sensitive sectors could remain under pressure in the near term.

Key Global Market Movements

• US stock market ended mixed on Monday, with the Dow Jones Industrial Average rising 159.95 points, or 0.32%, to 49,686.12, while the S&P 500 fell 5.45 points, or 0.07%, to 7,403.05.
• The Nasdaq Composite closed 134.41 points, or 0.51%, lower at 26,090.73.
• Nvidia stock price declined 1.33%, Microsoft shares rose 0.38%, Amazon share price gained 0.27%, Apple stock price fell 0.80%, and Tesla stock price slipped 2.90%.

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Global Economic Developments

• Japan's economy grew at a faster-than-expected pace in the first quarter, with real GDP increasing an annualised 2.1% and a QoQ basis growth of 0.5%.
• US President Donald Trump said he had paused a planned attack on Iran after Tehran sent a peace proposal to Washington, and that there was now a "very good chance" of reaching a deal limiting Iran's nuclear program.

Fuel Price Hike

Petrol and diesel prices were increased by 90 paise per litre on Tuesday, the second increase in less than a week. Petrol price was hiked to ₹98.64 a litre from ₹97.77 per litre in the national capital, while diesel now costs ₹91.58 a litre against ₹90.67 previously.

Bond Yields and Crude Oil Prices

Global bonds steadied and the yields fell amid drop in oil prices. Yields on the benchmark 10-year US Treasury note eased from a more than one-year high to 4.5974%, while the two-year yield was down slightly to 4.0564%. Crude oil prices fell more than 2% after Donald Trump said he had paused a planned attack on Iran. Brent futures for July delivery fell 2.25% to $109.58 a barrel, while US West Texas Intermediate crude for June delivery declined 0.98% to $107.60.

Gold Rate and Dollar Movement

Gold prices were steady amid a weak dollar and as the prospect of a US-Iran ceasefire deal eased some inflationary concerns. Spot gold price was steady at $4,565.40 per ounce, while US gold futures for June delivery gained 0.2% to $4,567.90. The dollar was steady amid easing fears of an escalation in the war.