US-Iran Tensions, Oil Prices, and Global Market Developments Impact Indian Stock Market Overnight

Indian Stock Market Expected to Open Flat Amid Mixed Global Cues

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a flat note on Tuesday, following mixed global market cues, amid cautiousness over the US-Iran peace talks.

As the global markets traded mixed, Asian markets witnessed a divergent trend, with Japan's Nikkei 225 falling 0.33% and the Topix declining 0.36%, while South Korea's Kospi jumped 3.34% to a fresh high, and the Kosdaq rallied 2.12%. Hong Kong's Hang Seng index futures indicated a lower opening.

Key Global Market Cues for Sensex Today

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In the Indian market, Monday saw a sharp rally amid buying across the board, with both the benchmarks rising more than 1% each. The Sensex jumped 1,073.61 points, or 1.42%, to close at 76,488.96, while the Nifty 50 settled 312.40 points, or 1.32%, higher at 24,031.70.

Religare Broking Ltd's Senior Vice President of Research, Ajit Mishra, stated that scheduled monthly expiries over the next two sessions and the ongoing earnings season may keep stock-specific volatility elevated, prompting the company to maintain a positive yet cautious stance.

US-Iran Peace Talks and Global Market Impact

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The US-Iran peace talks have been a focal point for global markets, with the US conducting "self-defense" strikes on Iran, including on missile launch sites and boats placing mines. US Central Command stated that the strikes were done "to protect our troops from threats posed by Iranian forces" but that it was "using restraint during the ongoing ceasefire."

The global market impact of the US-Iran tensions was also reflected in the US Treasury yields, which fell as bonds were largely steady after a rout last week. The yield on the two-year US Treasury note was last little changed at 4.0612%, while the 10-year yield fell to 4.5024%.

Crude oil prices rose on reports of fresh military strikes in Iran, with Brent crude oil futures rallying 1.5% to $97.56 a barrel, after settling 7% lower in the previous session. US West Texas Intermediate crude fetched $91.25, up slightly from Monday's last traded price but down 5.5% from Friday's close.

Gold prices fell as fresh US attacks in Iran pushed oil prices higher, fuelling concerns over inflation and higher-for-longer interest rates. Spot gold price declined 0.6% to $4,544.33 per ounce, while US gold futures for June delivery gained 0.5% to $4,545.60. Spot silver fell 0.8% to $77.42 per ounce.

The dollar nursed losses amid rising investor optimism of a US-Iran peace deal, trading at 99.031 against a basket of currencies. The euro held onto its gains to trade at $1.16365, while the Japanese yen fetched 158.95 per US dollar.