The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Tuesday, amid worries over the ongoing US-Iran war and its potential impact on the domestic economy.
Asian markets gained, while the US stock market ended higher overnight, as AI optimism fueling upward momentum.
On Monday, the Indian stock market ended sharply lower, extending losses for the third consecutive session, amid across-the-board selloff.
The Sensex crashed 1,312.91 points, or 1.70%, to close at 76,015.28, while the Nifty 50 settled 360.30 points, or 1.49%, lower at 23,815.85.
“Given the prevailing volatility, traders should avoid aggressive index positions and wait for clearer directional cues. Sectorally, we continue to prefer pharma and healthcare counters, while recommending investors utilise dips to accumulate quality names in the energy and metal space. Conversely, banking, IT, and crude-sensitive sectors such as aviation and paints may continue to underperform and could present selective short-selling opportunities,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Tuesday as investors stayed bullish on the AI trade even as the US and Iran failed to reach any peace deal. Japan’s Nikkei 225 rallied 1.22%, while the Topix gained 0.54%. South Korea’s Kospi jumped 1.58% and Kosdaq rose 0.62%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 23,679 level, a discount of nearly 190 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Wall Street
US stock market ended slightly higher on Monday, led by AI optimism.
The Dow Jones Industrial Average rose 95.31 points, or 0.19%, to 49,704.47, while the S&P 500 gained 13.91 points, or 0.19%, to 7,412.84. The Nasdaq Composite closed 27.05 points, or 0.10%, higher at 26,274.13.
Nvidia stock price rallied 1.96%, AMD shares rose 0.79%, Intel share price gained 3.64%, Qualcomm shares jumped 8.4%, Apple stock price fell 0.20%, Microsoft shares dropped 0.58%, Amazon share price declined 1.35%, and Tesla stock price surged 3.91%.
US-Iran Peace Talks
US President Donald Trump said the fragile ceasefire between the United States and Iran was at its “weakest” point and on “massive life support” after he rejected Tehran’s latest proposal to end the months-long conflict. Meanwhile, Iranian parliament speaker, Mohammad-Bagher Ghalibaf said that there is no alternative but to accept the 14-point proposal.
PM Modi’s Austerity Measures
Prime Minister Narendra Modi renewed his appeal for economic restraint, urging citizens to support the government’s austerity measures amid ongoing disruptions linked to the US-Iran war. PM now suggested that schools consider temporary online classes where feasible.
Japanese Bond Yields
Japan’s 10-year government bond yield rose to a 29-year high ahead of an auction of the same-maturity debt. The 10-year JGB yield rose 2 basis points (bps) to 2.540%, its highest since June 1997, Reuters reported. The 30-year yield inched up 2 bps to 3.78%, and the 40-year yield rose 1 bp to 4.035%.
India’s Energy Supply
India has 60 days of crude oil, natural gas, the central government said as Defence Minister Rajnath Singh chaired 5th Informal Group of Ministers (IGoM) meeting to review energy supply amid Middle East war.
Crude Oil Prices
Crude oil prices rose as negotiations to end the US-Iran war appeared fragile, keeping supply concerns alive. Brent crude futures were up 0.29% at $104.51 per barrel, while US West Texas Intermediate gained 0.32% to $98.38. Both benchmarks increased nearly 2.8% on Monday.
Gold Rate Today
Gold prices rose as investors eye developments surrounding the US-Iran war in the Middle East. Spot gold price rose 0.5% to $4,757.59 per ounce, while US gold futures for June delivery gained 0.8% to $4,768.20. Spot silver price rose 0.2% to $86.27 per ounce.
Dollar
The US dollar held its ground as talks to end the war in the Middle East showed no signs of progress, Reuters reported. The dollar index, which measures the US currency against six others, was at 97.98. The euro last bought $1.1775, while sterling was at $1.3602, both steady on the day. The Japanese yen was last at 157.30 per US dollar.
(With inputs from Agencies)
