The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, stabilising from a severe fall in the previous session, following gains in the global markets.
Asian markets rallied, while the US stock market ended higher overnight, led by gains in technology stocks.
On Tuesday, the Indian stock market ended with sharp losses, weighed down by selling across the board as AI disruption fears spooked global investor sentiment.
The Sensex crashed 1,068.74 points, or, 1.28%, to close at 82,225.92, while the Nifty 50 settled 288.35 points, or 1.12%, lower at 25,424.65.
“Global uncertainty and persistent concerns around AI-led disruption continued to weigh on market sentiment, keeping volatility elevated on D-Street. Looking ahead, markets are expected to remain volatile within a broader range, driven by mixed global and domestic cues,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Wednesday, following overnight rally on Wall Street, led by technology stocks. Japan’s Nikkei 225 gained 1.11%, while the Topix was flat. South Korea’s Kospi rose 0.77% to above 6,000 level for the first time, while the Kosdaq gained 0.22%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,672 level, a premium of nearly 72 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Tuesday, led by a rally in software stocks. The Dow Jones Industrial Average gained 370.44 points, or 0.76%, to 49,174.50, while the S&P 500 rallied 52.32 points, or 0.77%, to 6,890.07. The Nasdaq Composite closed 236.41 points, or 1.05%, higher at 22,863.68.
Nvidia stock price rose 0.68%, AMD share price jumped 8.8%, Intel shares rallied 5.71%, Microsoft stock gained 1.18%, Apple share price rose 2.24%, Amazon stock price advanced 1.60%, and Meta shares inched 0.3% higher.
Tesla stock price surged 2.39%, Keysight Technologies share price jumped 23.1%, FactSet stock rose 5.9%, Salesforce shares added 4.1%, and US-listed shares of Thomson Reuters jumped 11.5%.
Meta-AMD Deal
Advanced Micro Devices said it has agreed to sell up to $60 billion worth of AI chips to Meta Platforms over five years in a deal that allows the Facebook owner to purchase as much as 10% of the chip firm.
US-Iran Tensions
The US has ordered the biggest military buildup in the Middle East since the second Gulf war in 2003, including two aircraft carriers. The US is adding even more assets to the region, deploying 12 stealth F-22 fighter jets to Israel, according to CNN, which cited a defense official.
Gold Rate Today
Gold prices were broadly unchanged on Wednesday, after falling more than 1% in the previous session. Spot gold price held its ground at $5,146.18 per ounce, after hitting a more than three-week high in the previous session. US gold futures for April delivery fell 0.2% to $5,165.10. Spot silver price declined 0.2% to $87.13 per ounce, after hitting a more than two-week high on Monday.
Dollar
The dollar index held on to recent gains. The US dollar index rose 0.02%, extending a 0.14% gain from the previous session. The euro hovered at $1.1776 and sterling sat at $1.35. The yen dropped 0.8% overnight to as weak as 156.28 to the dollar and was a fraction stronger than that at 155.88.
Crude Oil Prices
Crude oil prices gained as investors remained cautious ahead of the US and Iran nuclear talks on Thursday amid a huge deployment of American forces in the Middle East. Brent crude oil price rose 0.83% to $71.36 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.84% to $66.19.
(With inputs from Reuters)
