The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note Wednesday, following mixed global market cues, amid uncertainty over the US-Iran peace deal.
Asian markets traded higher, while the US stock market ended mixed overnight, with the S&P 500 and Nasdaq hitting record closing highs.
On Tuesday, the ended lower, snapping its two-day winning run, due to profit booking and a jump in crude oil prices.
The Sensex declined 479.26 points, or 0.63%, to close at 76,009.70, while the Nifty 50 settled 118.00 points, or 0.49%, lower at 23,913.70.
“Markets continue to remain resilient despite elevated global uncertainty, supported by strong domestic liquidity and selective buying in broader markets. However, persistent geopolitical tensions in West Asia, inflationary concerns and mixed signals from the ongoing US-Iran negotiations are likely to keep investor sentiment cautious and market volatility elevated 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 mostly higher on Wednesday, with Japan and South Korea’s benchmark indices hitting new highs. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2%. Japan’s Nikkei 225 rallied 1.49% to a fresh record high, while the Topix gained 0.57%. South Korea’s Kospi jumped 4.84%, while the Kosdaq fell 0.68%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,891 level, a discount of nearly 87 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Tuesday, with the S&P 500 and Nasdaq hitting record closing highs, led by a rally in semiconductor stocks amid AI-fueled optimism.
The fell 118.02 points, or 0.23%, to 50,461.68, while the S&P 500 gained 45.65 points, or 0.61%, to 7,519.12. The Nasdaq Composite closed 312.21 points, or 1.19%, higher at 26,656.18.
Nvidia stock price declined 0.22%, AMD shares jumped 7.78%, Intel share price rallied 3.07%, Micron Technology shares surged 19.29%, Qualcomm shares gained 4.48%, Microsoft shares fell 0.61%, Apple stock price dropped 0.16% and Tesla stock price rose 1.78%.
US-Iran War
Iran said the US had violated a ceasefire by striking targets near the contested Strait of Hormuz. Meanwhile, Israel pounded Lebanon with more than 120 air strikes in one of the heaviest days of bombing in weeks, Reuters reported. Iran has sought an end to Israeli attacks in Lebanon as part of any deal.
US Consumer Confidence
US consumer confidence eased in May on worries about inflation linked to the war in Iran. The Conference Board said its consumer confidence index slipped to 93.1 this month from an upwardly revised 93.8 in April. Economists polled by Reuters had forecast the index would drop to 92.0 from the previously reported 92.8 in April.
Crude Oil Prices
Crude oil prices fell as the US touted progress toward a peace deal with Iran. Brent oil prices fell 0.54% to $99.04 a barrel after rising almost 4% on Tuesday, while West Texas Intermediate crude declined 0.72% to $93.21 a barrel.
Gold Rate Today
Gold prices rose, supported by a weaker dollar, amid signs of progress in US-Iran peace talks. Spot gold price gained 0.2% to $4,516.76 per ounce, while US gold futures for June delivery rose 0.3% to $4,516.30. Spot silver price gained 0.6% to $77.40 per ounce.
Dollar
The safe-haven dollar was steady after edging higher against major peers a day earlier. The dollar index, which measures the currency against the yen and five other rivals, was little changed at 99.087 after adding 0.15% on Tuesday. The yen crept up slightly to 159.20 per dollar. The euro was little changed at $1.1638.
(With inputs from Agencies)