The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, extending gains from previous session, following a rally in global markets, despite cautious sentiment due to the ongoing US-Iran war.
Asian markets traded higher, while the US stock market rallied overnight, led by gains in technology and AI-related stocks.
On Monday, the Indian stock market ended with sharp gains, led by fag-end buying in financials, auto, and FMCG stocks, despite persisting geopolitical risks.
The jumped 938.93 points, or 1.26%, to close at 75,502.85, while the Nifty 50 settled 257.70 points, or 1.11%, higher at 23,408.80.
“Markets recovered, however, volatility is likely to continue as investors remain cautious amid ongoing geopolitical developments in West Asia and fluctuations in energy prices. The conflict continues to weigh on sentiment and keep overall risk appetite subdued,” 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 overnight rally on Wall Street, as investors monitor the latest developments in the US-Iran war. Japan’s Nikkei 225 gained 0.75%, while the Topix rallied over 1%. South Korea’s Kospi surged 2.94%, and the Kosdaq advanced 1.53%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 23,504 level, a premium of nearly 75 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended sharply higher on Monday, fueled by gains in AI-related stocks.
The Dow Jones Industrial Average gained 0.83% to 46,946.41, while the S&P 500 rallied 1.01% to end the session at 6,699.38, its strongest one-day gain in over a month. The Nasdaq closed 1.22% higher at 22,374.18.
Nvidia stock price rose 1.6%, jumped 2.3%, Apple share price gained 1.08%, Microsoft shares rose 1.11%, Amazon share price rallied 1.96%, while Tesla stock price rose 1.1%. Micron Technology shares jumped 3.7%. Delta Air Lines rallied 3.5% and Norwegian Cruise Line Holdings shares surged 5.1%.
US-Iran War
The US-Iran war continues for the third week, rattling global financial markets. In the latest development, a wave of drone and rocket attacks targeted the US embassy in Baghdad, with at least five drones used. A powerful explosion was heard in the Iraqi capital, a Reuters witness reported.
India Unemployment Rate
India’s unemployment rate for people aged 15 years and above eased marginally to 4.9% in February from 5.0% in January. The in urban areas declined to 6.6% in February from 7.0% in the previous month. In contrast, the rural unemployment rate remained unchanged at 4.2%.
Crude Oil Prices
Crude oil prices rose more than 2%, reversing some of the previous session’s losses, on worries about supply with the Strait of Hormuz mostly shut. Brent crude oil price rose 2.81% to $103.06 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 2.97% to $96.28.
Gold Rate Today
Gold and silver prices were little changed after the US dollar slipped. Spot gold was little changed at $5,005.54 an ounce, while silver prices edged up 0.1% to $80.90.
Bitcoin Prices
Bitcoin prices rose to nearly a six-week high amid improved investors’ risk appetite. The largest cryptocurrency climbed about 4% to $74,512, the highest since February 4 before paring some of the gains. Bitcoin price is still down around 40% from a record high reached in October. Ether price rose as much as 10%, while Solana and XRP prices rose as much as 7%.
(With inputs from Reuters)