The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following a rally in Asian markets, amid reports of a US plan to end the Middle East war.
Asian markets traded higher, while the US stock futures gained on expectations of a peace plan on the US-Iran war.
On Tuesday, the Indian stock market ended with strong gains, following a rally in global markets amid signs of de-escalation in the US-Iran war.
The Sensex jumped 1,372.06 points, or 1.89%, to close at 74,068.45, while the Nifty 50 settled 399.75 points, or 1.78%, higher at 22,912.40.
“Key factors to monitor for market direction will include movements in crude oil prices, trends in Foreign Institutional Investor flows, and developments in US–Iran negotiations, which are likely to be the primary drivers in the near term,” 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 amid reports of peace talks between the US and Iran. Japan’s Nikkei 225 rallied 2.5%, while the Topix gained 2.4%. South Korea’s Kospi jumped 2.5%, while the Kosdaq rose 1.6%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,153 level, a premium of nearly 225 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended lower on Tuesday amid volatility as uncertainty persists around the Iran war and elevated oil prices.
The Dow Jones Industrial Average fell 84.41 points, or 0.18%, to 46,124.06, while the S&P 500 declined 24.63 points, or 0.37%, to 6,556.37. The Nasdaq Composite closed 184.86 points, or 0.84%, lower at 21,761.89.
Nvidia stock price fell 0.27%, Microsoft shares declined 2.73%, Amazon share price dropped 1.43%, while Tesla stock price rose 0.57%. Jefferies share price gained 2.5% and Estee Lauder shares tumbled 9.8%.
US-Iran War
US President Donald Trump said he had sent a peace proposal to Iran, expressing optimism about ending nearly a month-long conflict. Reports also said that the US military was preparing to deploy at least 2,000 troops from the 82nd Airborne Division to the Middle East in the coming days. Meanwhile, Tehran announced it would allow “non-hostile” oil vessels to pass through the vital Strait of Hormuz.
US Business Activity
US business activity slowed to an 11-month low in March. S&P Global said its flash US Composite PMI Output Index fell to 51.4 this month. That was the lowest level since last April and followed a 51.9 reading in February.
BOJ Meeting Minutes
Several Bank of Japan board members saw the need to keep raising interest rates without any specific pace in mind, although some called for “timely” action amid rising inflation, minutes of the bank’s January policy meeting showed, Reuters reported.
Crude Oil Prices
Crude oil prices dropped after reports that US President Donald Trump sent a peace plan to Iran. Brent crude oil price declined 5.82% to $98.41 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 5.04% to $87.70.
Gold Rate Today
Gold prices rallied over 2%, buoyed by a softer dollar. Spot gold price rose 2.1% to $4,568.29 per ounce, while US gold futures for April delivery gained 3.8% to $4,569.40. Spot silver price gained 3.8% to $73.94 per ounce.
Dollar
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.1% at 99.126. The euro rose 0.1% to $1.1619, and the British pound was up 0.1% at $1.3428. Against the yen, the US dollar was steady at 158.645 yen.
Bitcoin Prices
Bitcoin prices rose amid broader gains in the cryptocurrency market. Bitcoin price climbed 1.2% to $70,910.16 while ether was up 0.8% at $2,164.74.
(With inputs from Agencies)
