The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, as sentiment remains weak amid rising crude oil prices due to the blockade of the Strait of Hormuz.
Asian markets traded higher, with Nikkei and Kospi hitting record highs, while US stock market also rallied overnight, sending S&P and Nasdaq at record closing.
On Wednesday, the Indian stock market suffered strong losses, snapping their three-session winning streak.
The Sensex crashed 756.84 points, or 0.95%, to close at 78,516.49, while the Nifty 50 settled 198.50 points, or 0.81%, lower at 24,378.10.
“Indian markets are expected to consolidate in the near term as investors continue to monitor developments in the US–Iran conflict and the ongoing US blockade of the Strait of Hormuz. While the benchmark indices may remain sideways, the broader market is likely to continue seeing stock- and sector-specific action driven by March quarter earnings and sector specific news flows,” 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, with Japan and South Korean indices hitting record highs, following overnight rally on Wall Street extension of the US-Iran ceasefire.
Japan’s Nikkei 225 rose 0.6%. It reached an all-time intraday high of 60,013.98. South Korea’s Kospi also touched a record high of 6,538.72, advancing 1.75%. The Kosdaq gained 0.58%. Hong Kong Hang Seng index futures indicated a flat opening.
Gift Nifty Today
Gift Nifty was trading around 24,210 level, a discount of nearly 171 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended higher on Wednesday, with the S&P 500 and Nasdaq closing at record highs, led by optimism over the extension of the US-Iran ceasefire and solid corporate earnings.
The Dow Jones Industrial Average gained 340.65 points, or 0.69%, to 49,490.03, while the S&P 500 rallied 73.89 points, or 1.05%, to 7,137.90. The Nasdaq Composite closed 397.60 points, or 1.64%, higher at 24,657.57.
Nvidia stock price rose 1.31%, AMD shares jumped 6.67%, Broadcom share price surged 5.09%, Microsoft shares gained 2.07%, Apple stock price rallied 2.63%, and Amazon share price rose 2.18%. Tesla stock price added 0.28%.
GE Vernova shares spiked 13.75%, Boston Scientific share price jumped 8.99%, Boeing stock price advanced 5.53%, while United Airlines shares stumbled 5.58%.
US-Iran War
Iran fired on three ships in the Strait of Hormuz and seized two of them, intensifying its assault on shipping in the key waterway. The attacks came a day after US President Donald Trump extended a ceasefire while maintaining an American blockade of Iranian ports.
Tesla Q1 Earnings
Tesla’s Q1 profits beat estimates and the EV maker confirmed plans for massive additional investments in autonomous transport, humanoid robotics and artificial intelligence. Tesla’s Q1 profits rose 17% YoY to $477 million, while revenues jumped 16% YoY to $22.39 billion.
Tesla CFO Vaibhav Taneja boosted the company’s capital expenses forecast to $25 billion this year, from $9 billion in 2025. In Q1, the company recorded positive free cash flow of $1.44 billion, compared with estimates for a cash burn of $1.43 billion.
RBI MPC Minutes
The Reserve Bank of India’s rate-setting panel voted for the status quo on interest rates earlier this month, citing uncertainties posed by the US-Iran war and its impact on inflation, according to minutes of the Monetary Policy Committee (MPC). RBI Governor Sanjay Malhotra said that the West Asia conflict poses challenges to the Indian economy through a number of channels –exports, supply of critical commodities, elevated energy and other commodity prices, remittances, uncertainty, and subdued global demand.
Crude Oil Prices
Crude oil prices jumped after Iran vowed not to reopen the Strait of Hormuz so long as a US naval blockade remained in place. Brent crude oil price rose 0.33% to $102.25 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 2.81% to $92.13.
Gold Rate Today
Gold prices were little changed as the US extended the ceasefire with Iran. Spot gold price fell 0.3% to $4,727.65 an ounce, while silver price fell 0.3% to $77.48 an ounce.
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