The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, as investor sentiment dampened after US President Donald Trump said in an address that US forces will hit Iran ‘very hard’ for the next 2-3 weeks.
Asian markets traded higher, while the US stock market ended with gains overnight, led by a rally in index heavyweight stocks.
On Wednesday, the Indian stock market snapped its two-day losing run and ended with strong gains.
The jumped 1,186.77 points, or 1.65%, to close at 73,134.32, while the Nifty 50 settled 348.00 points, or 1.56%, higher at 22,679.40.
“The continuation of yesterday’s recovery will hinge on the progress and sustainability of de-escalation in the West Asia conflict. While recent developments have lifted sentiment, markets are likely to remain sensitive to incoming signals. Sustained easing of geopolitical tensions, alongside stability in crude prices, currency trends, and institutional flows, will be crucial in determining the durability of the recovery,” 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 Thursday, following overnight rally on Wall Street amid hopes that the US is looking to exit the Iran war. Japan’s Nikkei 225 gained 0.78%, while the Topix surged 1.01%. South Korea’s Kospi rallied 1.33% and the Kosdaq rose 1.14%. Hong Kong’s Hang Seng index futures indicated a marginally higher opening.
Gift Nifty Today
Gift Nifty was trading around 22,500 level, a discount of nearly 300 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Wall Street
US stock market ended higher on Wednesday, led by index heavyweights, after President Donald Trump suggested an end to the Iran war could be close.
The Dow Jones Industrial Average rallied 0.48% to 46,565.74, while the S&P 500 gained 0.72% to end the session at 6,575.32. The Nasdaq closed 1.16% higher at 21,840.95.
Nvidia stock price rose 0.75%, AMD shares gained 3.33%, Alphabet share price advanced 2.79%, while Tesla stock price rallied 2.79%. Intel share price spiked 8.8%, Intuitive Machines shares jumped 9%, Planet Labs stock surged 10% and Rocket Lab added 2%. Eli Lilly stock price rallied 3.8% and Nike shares slumped 15.5%.
Trump Speech
US President Wednesday said that the US was going to hit Iran very hard in the next 2-3 weeks. In a televised address outlining the latest updates in the war with Iran, Trump said US forces will ‘finish the job’ in Iran soon as ‘core strategic objectives are nearing completion.’
Japanese Bond Yields
Japan’s 10-year government bond yield rose. The 10-year JGB yield rose 1 basis point to 2.310% after falling for three straight sessions. The five-year yield rose 1.5 bps to 1.745%.
Crude Oil Prices
Crude oil prices rose after US President Donald Trump’s remarks on the Iran war. Brent crude oil price gained 1.45% to $103.00 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 0.91% to $101.34.
Gold Rate Today
Gold prices rose to a two-week high, supported by a weaker dollar and signs of de-escalation in the US-Iran war. Spot gold price gained 0.7% to $4,790.29 per ounce, the highest level since March 19. US gold futures rose 0.1% to $4,816.10. Spot silver price rose 0.7% to $75.62.
Dollar
Major currencies were steady in thin trading on Thursday. The dollar index, which measures the currency against a basket of currencies, was little changed at 99.56 after a 0.3% decline on Wednesday. The Japanese yen traded at 158.64. The euro stood at $1.1592 and the sterling fetched $1.3308, both scarcely changed versus the dollar.
(With inputs from Agencies)