US-Iran Peace Talks, Gift Nifty, and Crude Price Shifts: Overnight Developments Impact Indian Stock Market

Indian Stock Market Expected to Open Lower Amid US-Iran War Worries

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Tuesday due to concerns over the ongoing US-Iran war and its potential impact on the domestic economy.

Asian markets gained overnight, while the US stock market ended higher, fueled by AI optimism. The Sensex crashed 1,312.91 points, or 1.70%, to close at 76,015.28 on Monday, extending losses for the third consecutive session. The Nifty 50 settled 360.30 points, or 1.49%, lower at 23,815.85.

Global Market Cues

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Traders are advised to avoid aggressive index positions and wait for clearer directional cues. Sectorally, pharma and healthcare counters are preferred, while investors are recommended to utilise dips to accumulate quality names in the energy and metal space.

Religare Broking Ltd's Ajit Mishra, SVP, Research, noted that banking, IT, and crude-sensitive sectors such as aviation and paints may continue to underperform and could present selective short-selling opportunities.

US-Iran Peace Talks

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US President Donald Trump stated that the fragile ceasefire between the United States and Iran was at its "weakest" point and on "massive life support" after he rejected Tehran's latest proposal to end the months-long conflict. Iranian parliament speaker Mohammad-Bagher Ghalibaf said that there is no alternative but to accept the 14-point proposal.

PM Modi's Austerity Measures

Prime Minister Narendra Modi renewed his appeal for economic restraint, urging citizens to support the government's austerity measures amid ongoing disruptions linked to the US-Iran war. He suggested that schools consider temporary online classes where feasible.

Japanese Bond Yields

Japan's 10-year government bond yield rose to a 29-year high ahead of an auction of the same-maturity debt. The 10-year JGB yield rose 2 basis points (bps) to 2.540%, its highest since June 1997.

India's Energy Supply

India has 60 days of crude oil and natural gas, according to the central government, which said Defence Minister Rajnath Singh chaired the 5th Informal Group of Ministers (IGoM) meeting to review energy supply amid the Middle East war.

Crude Oil Prices

Crude oil prices rose as negotiations to end the US-Iran war appeared fragile, keeping supply concerns alive. Brent crude futures were up 0.29% at $104.51 per barrel, while US West Texas Intermediate gained 0.32% to $98.38.

Gold Price

Gold prices rose as investors eye developments surrounding the US-Iran war in the Middle East. Spot gold price rose 0.5% to $4,757.59 per ounce, while US gold futures for June delivery gained 0.8% to $4,768.20.

Dollar

The US dollar held its ground as talks to end the war in the Middle East showed no signs of progress. The dollar index, which measures the US currency against six others, was at 97.98.