The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a flat note Tuesday, following mixed global market cues, amid cautiousness over the US-Iran peace talks.
Asian markets traded mixed, with Kospi hitting record high, while the US stock futures traded higher.
On Monday, the Indian stock market witnessed a sharp rally amid buying across the board, with both the benchmarks rising more than 1% each.
The Sensex jumped 1,073.61 points, or 1.42%, to close at 76,488.96, while the Nifty 50 settled 312.40 points, or 1.32%, higher at 24,031.70.
“Scheduled monthly expiries over the next two sessions and the ongoing earnings season may keep stock-specific volatility elevated. We therefore continue to maintain a positive yet cautious stance, with a focus on stock selection based on prevailing sectoral rotation,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed amid hopes for a breakthrough in the US-Iran peace talks. Japan’s Nikkei 225 fell 0.33%, while the Topix declined 0.36%. South Korea’s Kospi jumped 3.34% to a fresh high, while the Kosdaq rallied 2.12%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 24,068 level, a premium of nearly 5 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.
Wall Street
US stock futures traded higher. Dow Jones Industrial Average futures gained 0.73% and the S&P 500 futures rose 0.78%. Nasdaq-100 futures rallied 1.14%. The US stock market was closed on Monday for the Memorial Day holiday.
US-Iran War
US conducted ‘self-defense’ strikes on Iran, including on missile launch sites and boats placing mines. US Central Command says the strikes were done “to protect our troops from threats posed by Iranian forces” but that it was “using restraint during the ongoing ceasefire.”
US Treasury Yields
US Treasury yields fell as bonds were largely steady after a rout last week. The yield on the two-year US Treasury note was last little changed at 4.0612%, while the 10-year yield fell to 4.5024%.
Crude Oil Prices
Crude oil prices rose on reports of fresh military strikes in Iran. Brent crude oil futures rallied 1.5% to $97.56 a barrel, after settling 7% lower in the previous session. US West Texas Intermediate crude fetched $91.25, up slightly from Monday’s last traded price but down 5.5% from Friday’s close.
Gold Rate Today
Gold prices fell as fresh US attacks in Iran pushed oil prices higher, fuelling concerns over inflation and higher-for-longer interest rates, Reuters reported. Spot gold price declined 0.6% to $4,544.33 per ounce, while US gold futures for June delivery gained 0.5% to $4,545.60. Spot silver fell 0.8% to $77.42 per ounce.
Dollar
The dollar nursed losses amid rising investor optimism of a US-Iran peace deal. Against a basket of currencies, the dollar was at 99.031. The euro held onto its gains to trade at $1.16365, while the Japanese yen fetched 158.95 per US dollar.
(With inputs from Agencies)
