The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a flat note Wednesday, following mixed global market cues, as investors remain cautious over the US-Iran peace deal.
Asian markets traded lower, while the US stock market ended mixed overnight, pressurised by selling in technology stocks.
On Tuesday, the Indian stock market extended its bull run into the third session in a row, as investors cheered the US-Iran peace deal and a subsequent decline in crude oil prices.
The Sensex jumped 544.15 points, or 0.71%, to close at 76,808.48, while the Nifty 50 settled 135.25 points, or 0.57%, higher at 23,989.15.
“Indian equities are expected to maintain their gradual positive momentum, supported by improving geopolitical developments, a revival in foreign institutional participation and a further fall in crude oil prices,” 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 lower on Wednesday, following a mixed trend from Wall Street overnight. Japan’s Nikkei 225 fell 0.20%, while the Topix rose 0.46%. South Korea’s Kospi declined 1.02%, while the Kosdaq dropped marginally. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 24,032 level, a premium of nearly 31 points from the Nifty futures’ previous close, indicating a flat-to-positive start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Tuesday, weighed down by selling pressure in technology stocks.
The Dow Jones Industrial Average rose 328.64 points, or 0.64%, to 51,999.67, while the S&P 500 declined 42.94 points, or 0.57%, to 7,511.35. The Nasdaq Composite closed 307.60 points, or 1.15%, lower at 26,376.34.
Nvidia stock price fell 2.37%, AMD shares tanked 7.30%, Intel share price slipped 8.45%, Micron Technology shares plunged 6.18%, Broadcom stock price declined 4.37%, Microsoft shares dropped 1.48%, Alphabet shares gained 1.09%, Apple stock price rose 0.95%, while SpaceX shares jumped 4.83% and Tesla stock price shed 1.58%.
US-Iran Peace Deal
Iran is set to receive broad financial incentives as part of its agreement with the US, including the right to sell oil immediately, tap a $300 billion development fund and get eventual access to its frozen assets, according to a final draft of the deal, Bloomberg reported.
Japan Trade Deficit
Japan’s total exports by value rose 17% YoY in May, outpacing a median market forecast for a 16.2% increase and following a 14.8% rise in April. Imports grew 12.5% in May YoY, compared with market forecasts for a 12.8% increase. As a result, Japan ran a trade deficit of 378.7 billion yen ($2.36 billion) in May, compared with the forecast of a 564.6 billion yen deficit.
Gold Rate Today
Gold prices rose, extending gains for a fifth straight session, as inflation concerns eased, while investors awaited the US Federal Reserve’s policy meeting outcome. Spot gold price rose 0.4% to $4,348.93 per ounce, while US gold futures for August delivery rose 0.3% to $4,368.40. Spot silver prices rose 0.4% to $70.47 per ounce.
Crude Oil Prices
Crude oil prices rose as investors assessed whether the Iran war will truly end and the Strait of Hormuz will reopen. Brent crude futures gained 0.49% to $79.35 a barrel, while US West Texas Intermediate rose to $76.44 a barrel, up 0.51%.
Dollar
The dollar eased ahead of the US Federal Reserve’s first policy decision under Chair Kevin Warsh. Against a basket of currencies, the dollar eased slightly to 99.53. The euro steadied at $1.1611 while sterling was little changed at $1.3430, Reuters reported. The yen last stood at 160.43 per dollar.
(With inputs from Agencies)
