Overnight Market Updates: Key Developments in Crude Oil, Gold, and Dollar Impact Indian Stock Market

Indian Stock Market Expected to Open Cautiously Amid Global Market Uncertainty

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Tuesday, following mixed cues from global markets. Asian markets traded mixed, while the US stock market ended flat overnight, as investors await latest developments regarding the US-Iran peace talks and a slew of central banks decisions this week.

On Monday, the Indian stock market snapped its three-day losing run and ended with strong gains. The Sensex jumped 639.42 points, or 0.83%, to close at 77,303.63, while the Nifty 50 settled 194.75 points, or 0.81%, higher at 24,092.70.

Global Market Cues for Sensex

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Asian stocks traded mixed as investors awaited developments in the US-Iran peace talks and a slew of central bank decisions. Japan's Nikkei 225 declined 0.49%, while the Topix gained 0.23%. South Korea's Kospi rose 0.1%, while the Kosdaq dropped 0.92%. Hong Kong Hang Seng index futures indicated a lower opening.

US Stock Market

The US stock market ended mixed on Monday, with the S&P 500 and the Nasdaq eking out modest gains. The Dow Jones Industrial Average fell 62.67 points, or 0.13%, to 49,168.04, while the S&P 500 rose 8.85 points, or 0.12%, to 7,173.93. The Nasdaq Composite closed 50.50 points, or 0.20%, higher at 24,887.10.

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

Key Global Events

A slew of central bank decisions this week is expected to influence global markets. The US-Iran conflict remains in a stalemate, with energy supplies from the region reduced. The US official said that President Donald Trump is unhappy with an Iranian proposal because it did not address Iran's nuclear program.

Market Sentiment

The gold price was steady as investors awaited more clarity on stalled US-Iran peace talks and key central bank decisions this week. Spot gold price rose 0.2% to $4,693.04 per ounce, while US gold futures for June delivery gained 0.3% to $4,707.80. Crude oil prices gained as efforts to end the US-Iran war appear stalled, with the crucial Strait of Hormuz waterway still mainly shut.

Currency Markets

The US dollar index, which measures the greenback's strength against a basket of six currencies, snapped a two-day losing streak with a 0.1% rise to 98.448. The euro was down 0.1% at $1.1715, while the British pound was trading at $1.3527. The Japanese yen steadied and was flat against the dollar at 159.49 yen.