The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following a rally in global markets, amid hopes of a US-Iran peace deal.
Asian markets gained, while the US stock market ended higher overnight, with the S&P 500 and Nasdaq posting record closing high.
On Tuesday, the Indian stock market ended lower, largely due to profit booking in select banking and financial heavyweights.
The Sensex declined 251.61 points, or 0.33%, to close at 77,017.79, while the Nifty 50 settled 86.50 points, or 0.36%, lower at 24,032.80.
“Nifty 50 is expected to consolidate in the near term, with markets likely to remain sensitive to developments in West Asia. While, positive domestic macros, steady Q4 earnings and intermittent FII buying has provided near-term support, elevated crude prices, currency weakness and geopolitical uncertainties are key overhang,” 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, following overnight rally on Wall Street. South Korea’s Kospi rallied 5.4% to scale a new peak, while Kosdaq fell 0.15%. Hong Kong Hang Seng index futures indicated a lower opening. Japan stock market is closed for a holiday.
Gift Nifty Today
Gift Nifty was trading around 24,306 level, a premium of nearly 200 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
US stock market ended higher on Tuesday, with the S&P 500 and Nasdaq notching record high closes, as a US-Iran ceasefire held firm and investors focused on strong quarterly earnings.
The Dow Jones Industrial Average gained 0.73% to 49,298.25, while the S&P 500 rallied 0.81% to end at 7,259.22. The Nasdaq closed 1.03% higher at 25,326.13.
Nvidia stock price fell 1.03%, AMD shares surged 4.02% and jumped 16.54% in extended trading, Intel share price rallied 12.95%, Apple stock price gained 2.64%, Amazon share price rose 0.53%, Microsoft shares dropped 0.55%, and Tesla stock price eased 0.83%.
US-Iran War
US President Donald Trump said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing “great progress” toward a comprehensive agreement with Iran.
“We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom … will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” Trump wrote on social media.
US Job Openings
US job openings slipped in March amid a decline in professional and business services. Job openings, a measure of labor demand, were down 56,000 to 6.866 million by the last day of March, the JOLTS report showed. Economists polled by Reuters had forecast 6.835 million unfilled jobs. The job openings rate eased to 4.1% from 4.2% in February.
US PMI
The Institute for Supply Management’s Non-Manufacturing Purchasing Managers’ Index for April came in at 53.6, narrowly missing the estimate of 53.7, according to economists polled by Reuters.
Treasury Yields
US Treasury yields fell along with a decline in crude prices. The yield on the benchmark US 10-year Treasury note fell 3 basis points to 4.416%, while the 30-year bond yield lost 4 bps to 4.985%. The two-year US Treasury yield dipped 2.4 bps to 3.938%.
Gold Rate Today
Gold prices rallied, buoyed by a weaker dollar, while lower oil prices eased inflation fears. Spot gold price rose 1.3% to $4,617.19 per ounce, while US gold futures for June delivery gained 1.4% to $4,631.30. Spot silver price surged 2.4% to $74.60 per ounce.
Crude Oil Prices
Crude oil prices fell after Trump indicated a possible peace deal may be reached to end the war with Iran. Brent crude futures for July fell 1.38% to $108.35 per barrel, after dropping 4% in the previous session. US benchmark West Texas Intermediate futures for June declined 1.47% to $100.77, after closing down 3.9% the day before.
Dollar
The dollar retreated against most major currencies. The dollar index fell 0.01% to 98.299. Against the yen, the dollar traded at 157.62 yen, down 0.17%. The euro stood at $1.1714 and sterling traded at $1.35685, both up roughly 0.2% so far on the day.
(With inputs from Agencies)
