From Gift Nifty, US-Iran peace talks to crude oil prices: 10 key things that changed for Indian stock market overnight

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a positive note Friday, following gains in global markets, as investors hoped for a US-Iran peace deal to end the war in the Middle East.

Asian markets traded higher, while the US stock market gained overnight, with the Dow Jones posting a record closing high.

On Thursday, the Indian stock market ended lower, weighed down by profit booking in select index heavyweights.

The Sensex declined 135.03 points, or 0.18%, to close at 75,183.36, while the Nifty 50 settled 4.30 points, or 0.02%, lower at 23,654.70.

“Given the prevailing setup, we continue to maintain a cautious stance on the index and recommend a stock-specific trading approach while maintaining balanced exposure on both the long and short sides,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Friday, following overnight gains on Wall Street, amid hopes of a US-Iran peace deal. Japan’s Nikkei 225 rallied 1.36%, while the Topix rose 0.55%. South Korea’s Kospi gained 0.52%, while the Kosdaq Index jumped over 3%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 23,654 level, a premium of nearly 23 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

Wall Street

US stock market ended slightly higher amid hopes of progress in the US-Iran peace talks.

The Dow Jones Industrial Average gained 276.31 points, or 0.55%, to 50,285.66, marking a record closing high, while the S&P 500 rose 12.75 points, or 0.17%, to 7,445.72 and the Nasdaq Composite gained 22.74 points, or 0.09%, to 26,293.10.

Nvidia stock price fell 1.77%, Amazon shares rallied 1.30%, Microsoft share price eased 0.47%, Apple stock price rose 0.91%, IBM shares jumped 12.4%, while Tesla stock price added 0.14%.

US-Iran Peace Talks

The US and Iran are engaged in indirect talks aimed at developing a framework for a possible agreement, a report said. The two sides are currently exchanging messages and draft texts. Meanwhile, US Secretary of State Marco Rubio said there had been “some good signs” in talks with Iran, although Tehran’s uranium stockpile and control over the Strait of Hormuz remained sticking points.

US Jobless Claims

The number of Americans filing claims for unemployment benefits fell last week. Initial claims for state unemployment benefits slipped 3,000 to a seasonally adjusted 209,000 for the week ended May 16. Economists polled by Reuters had forecast 210,000 claims for the latest week.

Japan Inflation

Japan’s annual core inflation slowed to a four-year low in April. Japan’s core consumer price index (CPI), which strips away the effect of volatile fresh food costs, rose 1.4% in April from a year earlier, much slower than a 1.8% rise in March and falling short of the median market forecast for a 1.7% gain.

US Treasury Yields

US Treasury yields fell following reports that the United States and Iran have neared a final draft of a peace deal. The yield on the benchmark 10-year Treasury note was down 0.8 basis points on the day at 4.575%. The 30-year Treasury bond’s yield fell by roughly 2 bps to 5.096%. The two-year Treasury note yield rose 2.3 bps to 4.08%.

Gold Rate Today

Gold prices fell and were on track for its second consecutive weekly loss. Spot gold price declined 0.2% to $4,534.29 per ounce. The metal was down about 0.1% for the week so far. US gold futures for June delivery fell 0.1% to $4,535.60. Spot silver prices fell 0.5% to $76.32 per ounce.

Crude Oil Prices

Crude oil prices rose as investors doubted the prospects of a breakthrough in the US-Iran peace talks. Brent crude futures rose 2.3% to $104.96 a barrel and US West Texas Intermediate futures were up 1.8% at $98.08.

Dollar

The dollar held near a six-week top. The dollar was a touch higher and stood at 99.24 against a basket of currencies, its highest since April 7. The euro dipped 0.03% to $1.1613, while the pound was flat at $1.3431. The Japanese yen was 0.1% lower at 159.09 per dollar.

(With inputs from Agencies)