Indian stock market: 10 things that changed overnight - Gift Nifty, Israel-Iran ceasefire to Jerome Powell's testimony

Mint

6 hours ago

Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following positive cues from global markets, after Israel and Iran agreed for a ceasefire.
Asian markets traded higher, while the US stock market rallied overnight, with all three major US stock indexes gaining over a percent each.
On Tuesday, the Indian stock market ended with modest gains after witnessing profit booking at higher levels.
The Sensex gained 158.32 points, or 0.19%, to close at 82,055.11, while the Nifty 50 settled 72.45 points, or 0.29%, higher at 25,044.35.
'The Nifty's failure to surpass the 25,200-resistance level indicates that the bears are still active and not ready to give in. However, rotational buying across key sectors, along with notable strength in the midcap and smallcap segments, continues to offer trading opportunities. Participants are advised to maintain a positive yet cautious stance, with a strong focus on stock selection driven by sectoral trends,' said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian markets traded higher on Wednesday, on optimism over a ceasefire between Israel and Iran. Japan's Nikkei 225 gained 0.12%, while the Topix fell 0.21%. South Korea's Kospi rose 0.44%, and the Kosdaq was flat. Hong Kong's Hang Seng index futures indicated a higher opening.
Gift Nifty was trading around 25,160 level, a premium of nearly 88 points from the Nifty futures' previous close, indicating a positive start for the Indian stock market indices.
US stock market ended higher on Tuesday as sentiment improved after a fragile truce between Israel and Iran.
The Dow Jones Industrial Average rallied 507.24 points, or 1.19%, to 43,089.02, while the S&P 500 gained 67.01 points, or 1.11%, to 6,092.18. The Nasdaq Composite closed 281.56 points, or 1.43%, higher at 19,912.53.
Tesla share price declined 2.4%, Nvidia stock price gained 2.59%, while Advanced Micro Devices shares jumped 6.83%. Lockheed Martin stock price dropped 2.6% and RTX Corp shares fell 2.7%. Coinbase Global and Microstrategy shares advanced 12.1% and 2.7%, respectively. Broadcom stock price rose 3.9%, while FedEx shares plunged more than 4% in extended trading.
Israel and Iran agreed a ceasefire, ending 12 days of airstrikes, after US President Donald Trump joined the conflict, destroying key Iranian nuclear sites. The two nations signalled that the air war between them had ended, at least for now. Israeli Prime Minister Benjamin Netanyahu declared a 'historic victory' against Iran despite a US intelligence report concluding that American strikes set back Tehran's nuclear program by just a few months.
Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of Congress. Powell said he and many at the Fed expect inflation to start rising soon, and that the central bank was in no rush to ease borrowing costs in the meantime.
US consumer confidence unexpectedly deteriorated in June. The Conference Board said its consumer confidence index dropped 5.4 points to 93.0 this month, erasing nearly half of the sharp gain in May. Economists polled by Reuters had forecast the index increasing to 100.0.
Crude oil prices rose as investors assessed the stability of a ceasefire between Iran and Israel. Brent crude futures gained 1.09% to $67.87 a barrel, while US West Texas Intermediate (WTI) crude prices rose 1.23% to $65.16.
Gold prices held their ground as a tentative ceasefire between Iran and Israel dampened safe-haven demand. Spot gold price was unchanged at $3,326.39 per ounce, after hitting an over two-week low on Tuesday. US gold futures rose 0.2% to $3,340.
The dollar struggled to regain lost ground on Wednesday amid optimism over a fragile truce between Israel and Iran. Against a basket of currencies, the dollar eased slightly to 97.91. Japanese yen steadied at 144.96 per dollar, the euro remained perched near its highest since October 2021 at $1.1621, and Sterling eased 0.02% to $1.3615.
US Treasury yields declined, with the two-year and 10-year notes hitting seven-week lows. The two-year US Treasury yield fell to a 1-1/2-month low of 3.7870%. The benchmark 10-year yield was little changed at 4.3043%.
(With inputs from Reuters)
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