The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Tuesday, following weakness in global markets, as escalating US-Iran war dented sentiment.
Asian markets traded lower, while the US stock market declined overnight, with the S&P 500 retreating from record highs.
On Monday, the Indian stock market pared early gains amid profit-taking, but ended higher.
The Sensex gained 355.90 points, or 0.46%, to close at 77,269.40, while the Nifty 50 settled 121.75 points, or 0.51%, higher at 24,119.30.
“Indications suggest a continuation of consolidation in the index, given the pressure in key sectors like banking and IT, along with crude oil prices remaining elevated. Traders are advised to maintain a sector- and theme-specific approach and prefer hedged strategies until clearer directional signals emerge,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets looked set to retreat from record highs amid concerns that Middle East tensions could escalate again. Equity-index futures pointed to losses in Australia and Taiwan at the open. Markets in Japan, South Korea and mainland China are closed.
Gift Nifty Today
Gift Nifty was trading around 24,038 level, a discount of nearly 168 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 Monday as escalating war in the Middle Ease dampened optimism about strong first-quarter earnings reports.
The Dow Jones Industrial Average declined 1.13% to 48,941.90, while the S&P 500 dropped 0.41% to end at 7,200.75. The Nasdaq closed 0.19% lower at 25,067.80.
Nvidia stock price rose 0.04%, AMD shares plunged 5.27%, Intel share price declined 3.84%, Microsoft shares eased, Apple stock price fell 1.21%, Amazon shares gained 1.36%, and Tesla stock price rose 0.45%.
GameStop shares tumbled 10%, eBay rose about 5%, FedEx shares tanked 9.1%, United Parcel Service cracked 10.5%, Palantir shares rallied 1.4% and Norwegian stock price dropped 8.6%.
US-Iran War
The US-Iran war in the Middle East escalated after both the countries exchanged fire on Monday that also drew in the United Arab Emirates, prompting calls for renewed strikes on Iranian targets. The US military said it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones as Tehran sought to thwart a new US naval effort to open shipping through the Strait of Hormuz.
Assembly Election Results
The BJP is set to form government with a huge majority in West Bengal and Assam, while in Kerala, Congress-led UDF has secured a decisive victory. In Tamil Nadu, the Vijay’s TVK has secured 107 seats, pushing incumbent CM Stalin-led DMK to the third position.
Crude Oil Prices
Crude oil prices eased after climbing by as much as 6% in the previous session. Brent oil futures for July fell 0.6% to $113.76 per barrel, after settling up 5.8% on Monday. US West Texas Intermediate (WTI) crude fell 1.5% to $104.83, after gaining 4.4% in the previous session.
Gold Rate Today
Gold prices were largely steady as renewed escalation in US-Iran war fueled inflation and rate-hike risks. Spot gold price rose 0.2% to $4,528.99 per ounce, while US gold futures for June delivery rose 0.1% to $4,538.20. Spot silver price gained 0.1% to $72.76 per ounce.
Dollar
The dollar index, which measures the US currency against six units, was steady at 98.452 after rising 0.3% on Monday. The euro last fetched $1.1693, while Sterling was at $1.353. The yen bought 157.22 per US dollar.
(With inputs from Agencies)
