The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, amid mixed global market cues, as investors remain cautious over the developments in the US-Iran war.
Asian markets traded higher, while the US stock market ended lower overnight, amid widening conflict in the Middle East.
On Tuesday, the Indian stock market ended with healthy gains, as global risk sentiment improved after US President Donald Trump hinted that the US-Iran war in West Asia could be nearing an end.
The Sensex jumped 639.82 points, or 0.82%, to close at 78,205.98, while the Nifty 50 settled 233.55 points, or 0.97%, higher at 24,261.60.
“Going ahead, markets are likely to remain sensitive to developments in West Asia and movements in crude prices, while global macro cues will continue to guide overall risk sentiment,” 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 as investors assessed the development over the ongoing US-Iran war. Japan’s Nikkei 225 gained 1.36%, while the Topix rose 1.22%. South Korea’s Kospi rallied 2.52%, and the Kosdaq rose 1.39%.Hong Kong Hang Seng index indicated a muted opening.
Gift Nifty Today
Gift Nifty was trading around 24,334 level, a discount of nearly 60 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended lower on Tuesday, as investors weighed fading hopes for an earlier-than-expected end to the US-Iran war against a backdrop of renewed military threats and ongoing worries of economic stagflation.
The Dow Jones Industrial Average declined 34.29 points, or 0.07%, to 47,706.51, while the S&P 500 fell 14.51 points, or 0.21%, to 6,781.48. The Nasdaq Composite ended 1.16 points, or 0.01%, higher at 22,697.10.
Nvidia stock price gained 1.16%, AMD shares rose 0.27%, Intel stock price rallied 2.63%, Apple share price rose 0.37%, SanDisk shares jumped 5.12% and Tesla stock price added 0.14%. Centene shares plunged 15.97%, while in the extended hours, Oracle stock rallied 8.70%.
US-Israel-Iran War
Israel is not seeking an endless war with Iran and will coordinate with the United States on when to end the fighting, Foreign Minister Gideon Saar said. The US-Israeli war with Iran has engulfed the Middle East, with Iranian strikes hitting neighbouring states, including the United Arab Emirates, and Israel fighting Hezbollah in Lebanon as well as striking Iran.
Oil Reserves Release
The International Energy Agency (IEA) has proposed its largest ever release of oil reserves to counter soaring crude prices driven by the US-Iran war, the Wall Street Journal reported. The release would exceed the 182 million barrels IEA member countries put on the market in 2022 following Russia’s invasion of Ukraine, the paper said.
Reliance Oil Refinery in US
President Donald Trump said that India’s Reliance Industries was supporting a proposed oil refinery project in Texas that he described as a ‘historic’ development for the United States energy sector. Trump said it was a $300 billion deal, but it was not immediately clear if he meant that was part of a bigger deal with India.
Japan Wholesale Inflation
Japan’s wholesale inflation cooled for a third month in February. The corporate goods price index (CGPI) rose 2.0% in February from a year earlier, slowing from a 2.3% increase in January. It compared with a median market forecast for a 2.1% increase.
Gold Rate Today
Gold prices rose as a retreat in oil prices eased inflation worries, while investors awaited a slew of US economic data this week to gauge the Federal Reserve’s policy outlook. Spot gold price gained 0.4% to $5,213.99 per ounce, while US gold futures for April delivery fell 0.4% to $5,221.80. Spot silver prices rose 0.6% to $88.89 per ounce.
Crude Oil Prices
Crude oil prices steadied after falling over 11% overnight amid reports of IEA proposal for reserve release. Brent crude oil price rose 0.91% to $88.60 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.55% to $83.91.
Dollar
The dollar held its ground as traders moved to the sidelines. The dollar index, which measures the US unit against six other rivals, was at 98.876, inching away from the three-month top hit on Monday. The euro last bought $1.16205, slightly stronger than the three-month low it touched on Monday. Sterling was 0.12% higher at $1.34305.
(With inputs from Reuters)
