The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, following a rally in global markets amid signs of de-escalation in the US-Iran war.
Asian markets jumped, while the US stock market ended higher overnight, after US postponed strikes against Iranian power plants.
On Monday, the Indian stock market resumed its downward trend and ended sharply lower amid intense selling pressure on concerns over the prolonged US-Iran war.
The Sensex crashed 1,836.57 points, or 2.46%, to close at 72,696.39, while the Nifty 50 settled 601.85 points, or 2.60%, lower at 22,512.65.
“Markets appear to be navigating a phase of heightened stress, with sentiment increasingly dictated by geopolitical developments and energy price volatility. Market conditions are likely to remain fragile, with elevated volatility and downside risks persisting 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 Tuesday, following signs of de-escalation in the US-Iran war. Japan’s Nikkei 225 gained 2.2%, while the Topix rose 2.47%. South Korea’s Kospi jumped 3.5%, while the Kosdaq rallied 3.29%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 22,909 level, a premium of nearly 395 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 Monday after President Donald Trump said he had ordered the military to postpone strikes against Iranian power plants following “productive conversations” with Tehran.
The Dow Jones Industrial Average rallied 631.00 points, or 1.38%, to 46,208.47, while the S&P 500 gained 74.52 points, or 1.15%, to 6,581.00. The Nasdaq Composite closed 299.15 points, or 1.38%, higher at 21,946.76.
Nvidia stock price rose 1.59%, Apple shares gained 1.41%, while Tesla stock price surged 3.50%. Alaska Air and United Airlines shares both rose over 4% while American Airlines rallied 3.66%. Norwegian Cruise Line shares jumped 6.17% while Carnival Corp and Viking Holdings both climbed more than 5%. JPMorgan Chase added 1.2% while Goldman Sachs rose 2.2%.
US-Iran War
In the latest development in the US-Iran war, US President Donald Trump extended his deadline for Iran to reopen the Strait of Hormuz, and said that the US will hold off striking Iranian power plants for five more days. Trump said US envoys have been holding talks with a “respected” Iranian leader, and Iran wants “to make a deal.” However, Iranian officials denied any such negotiations.
SEBI Board Meet
The board of markets regulator Sebi approved a wide-ranging proposal, including easing fund settlement norms for foreign portfolio investors (FPIs), and changes to regulatory frameworks for market intermediaries. The Sebi board also approved several recommendations of the high-level committee on “conflict of interest” and disclosures concerning Sebi officials.
Japan PMI
Activity in Japan’s manufacturing sector slowed in March. The S&P Global flash Japan Manufacturing Purchasing Managers’ Index (PMI) fell to 51.4 in March from a near four-year high of 53.0 in February. The services sector also experienced a slowdown, with the flash Japan services PMI decreasing to 52.8 from 53.8 in February. The flash Japan composite PMI was down to 52.5 in March from 53.9 in February, its slowest rise in three months.
Crude Oil Prices
Crude oil prices rose on supply fears, as Iran denied it had held talks with the US to end the war in the Gulf. Brent futures rallied 2.03% to $101.97 a barrel, while US West Texas Intermediate (WTI) climbed 2.92% to $90.70.
Gold Rate Today
Gold prices rose after the postponement of US strikes against Iran’s power infrastructure. Spot gold price gained 0.8% to $4,441.01 an ounce, while silver prices rose 0.9% to $69.76.
(With inputs from Reuters)
