Seven Key Events That Shaped the Indian Stock Market Overnight
Indian Stock Market Expected to Open Higher Amid Global Rally
The Indian stock market benchmark indices, Sensex and Nifty 50, are anticipated to open higher on Wednesday, following a rally in global markets, after the US and Iran agreed to a two-week ceasefire deal. The Asian markets jumped, while the US stock futures traded higher after US President Donald Trump announced to halt military attacks on Iran in exchange for Tehran reopening the Strait of Hormuz.
On Tuesday, the Indian stock market ended with healthy gains, extending its rally for the fourth consecutive session. The Sensex surged 509.73 points, or 0.69%, to close at 74,616.58, while the Nifty 50 settled 155.40 points, or 0.68%, higher at 23,123.65. The Reserve Bank of India (RBI) is set to announce its first bi-monthly monetary policy for FY27 today. The RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is widely expected to keep the repo rate unchanged at 5.25%, and maintain policy stance at ‘Neutral’.
The outcome of the MPC meeting will be crucial, with its commentary remaining critical amid the uncertain global backdrop. Traders are advised to maintain a cautious stance, focus on stock-specific opportunities, and continue to manage overnight risks prudently.
Key Global Market Cues for Sensex Today
| Market | Movement |
|---|---|
| Japan’s Nikkei 225 | Surged 4.5% |
| Topix | Rallied 3.2% |
| South Korea’s Kospi | Jumped 5.3% |
| Kosdaq | Gained 3.4% |
| Hong Kong’s Hang Seng Index futures | Indicated a higher opening |
The Sensex is expected to react positively to the overnight developments on the US-Iran ceasefire front. Additionally, the market will be keenly watching the outcome of the MPC meeting for cues on the domestic market.
Global Markets React to US-Iran Ceasefire Deal
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The global markets reacted positively to the US-Iran ceasefire deal, with the US stock futures jumping following the announcement. The Dow Jones Industrial Average futures rallied by 718 points, or 1.5%, while the S&P 500 futures gained 1.6%. Nasdaq 100 futures surged 1.7%.
Key US Stock Market Movements
| Stock | Movement |
|---|---|
| Nvidia | Rose 0.26% |
| AMD | Gained 0.61% |
| Broadcom | Rallied 6.21% |
| Intel | Jumped 4.19% |
| Apple | Fell 2.07% |
| Tesla | Declined 1.75% |
| UnitedHealth | Jumped 9.4% |
| Humana | Surged 7.9% |
| CVS Health | Spiked 6.7% |
The US and Iran agreed to a two-week ceasefire deal, which is expected to halt the American-Israeli military attacks in exchange for Tehran reopening the Strait of Hormuz. The deal is a significant development in the region and is expected to have a positive impact on the global markets.
Crude Oil Prices Crash
Crude oil prices crashed after the US and Iran agreed to a two-week ceasefire deal, with a temporary reopening of the Strait of Hormuz. Brent crude oil price slipped 13.86% to $94.13 a barrel, while the US West Texas Intermediate (WTI) crude futures plunged 15.02% to $95.99 a barrel.
Gold and Bitcoin Prices Rise
Gold prices rose after the US and Iran agreed to a two-week ceasefire to finalize talks on ending the war. Spot gold price gained 3% to $4,849.01 an ounce, while silver prices jumped 5.4% to $76.92 an ounce. Bitcoin prices rose to a three-week high after the US-Iran ceasefire deal led to a surge in risk assets. The largest cryptocurrency, Bitcoin prices spiked as much as 4.9% to $72,738, its highest level since March 18, and was trading just below $72,000.
Investor Takeaway
Indian stock market is expected to open higher on Wednesday following a rally in global markets.
More in Market
SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
