The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open sharply lower on Monday, following a sell-off in global markets, amid a surge in crude oil prices as the expanding US-Israeli war with Iran fuelled fears of tighter supply and prolonged disruptions to shipments through the Strait of Hormuz.
Asian markets crashed, while the US stock market ended lower last week, as escalating war in the Middle East dented sentiment.
This week, investors will watch out for key stock market triggers, including the latest developments over the US-Israel-Iran war, crude oil prices, gold and silver rates, flow of foreign funds, inflation data, and other domestic and global macroeconomic data.
On Friday, the Indian stock market ended sharply lower amid persisting concerns over the US-Iran war, spike in crude oil prices, and heavy foreign capital outflow.
The Sensex crashed 1,097.00 points, or 1.37%, to close at 78,918.90, while the Nifty 50 settled 315.45 points, or 1.27%, lower at 24,450.45.
“Going ahead, developments in West Asia and their implications for global energy supply will remain key monitorables for markets, alongside movements in crude prices and broader global risk sentiment,” 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 sharply lower on Monday amid surging crude oil prices due to the war in the Middle East. Japan’s Nikkei 225 crashed 6.22% and fell below the 53,000 mark for the first time since February 6, while the Topix declined 5.27%. South Korea’s Kospi tumbled 6.68%. Hong Kong Hang Seng index futures indicated a sharply lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,824 level, a discount of nearly 722 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Wall Street
US stock market ended lower on Friday after disappointing US labor market data and a 12% spike in US oil prices due to the escalating conflict in the Middle East.
The Dow Jones Industrial Average declined 0.95% to 47,501.55, while the S&P 500 lost 1.33% to 6,740.00. The Nasdaq Composite closed 1.59% lower at 22,387.68.
Nvidia stock price dropped 2.98%, AMD shares fell 3.51%, Amazon share price declined 2.66%, Apple stock price fell 1.09%, while Tesla stock price plunged 2.17%. BlackRock share price tanked 7.1%, Western Alliance stock price cracked 8.4%, Jefferies shares crashed 13.5%, and Marvell Technology share price jumped 18.4%.
US-Iran War
Iran continued its attacks across the Persian Gulf, striking key infrastructure, while Israel also launched fresh strikes which hit oil storage sites in Tehran. Iran named Mojtaba Khamenei the country’s next supreme leader, state media reported, following the killing of his father Ayatollah Ali Khamenei.
US Nonfarm Payrolls
The US economy unexpectedly lost jobs in February and the unemployment rate increased to 4.4%. Nonfarm payrolls decreased by 92,000 jobs last month after a downwardly revised 126,000 increase in January. Economists polled by Reuters had forecast payrolls advancing by 59,000 jobs after increasing by a previously reported 130,000 in January.
Crude Oil Price
Crude oil prices surged about 20%, hitting their highest since July 2022. Brent crude oil price jumped 17.8% to $109.19 a barrel, while the US West Texas Intermediate (WTI) crude futures spiked 20.11% to $109.18. Last week, Brent oil climbed 27% and WTI rose 35.6%.
Gold Prices
Gold price fell more than 2%, as a stronger dollar weighed on greenback-priced bullion. Spot gold price declined 2.5% to $5,041.89 per ounce, while US gold futures for April delivery were down 2.1% at $5,049.40. Spot silver price dropped 4% to $80.99 per ounce.
Dollar
The US dollar hovered near a three-month high hit last week, while the 10-year Treasury yields climbed to a near one-month high. The US dollar index rose to 99.695 against the basket of currencies.
(With inputs from Agencies)
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