From Gift Nifty, US-Iran talks to fall in Japanese Yen: 8 key things that changed for Indian stock market overnight

The Indian stock market is expected to open flat on Wednesday, tracking cues from global markets.

Asian markets traded mixed, while the US stock market continued to rally overnight.

On Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 closing below 23,900 level.

The Sensex declined 249.70 points, or 0.33%, to close at 76,478.67, while the Nifty 50 settled 80.50 points, or 0.34%, lower at 23,865.75.

“Indian equities are expected to witness a mixed trend amid geopolitical uncertainties in West Asia. Although ceasefire negotiations continue in Qatar, recent military strikes have dampened expectations of a durable truce, keeping investor sentiment cautious despite lower crude oil prices,” 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 on a mixed note on Wednesday. Japan led the gains, with the Nikkei 225 climbing 1.79% and the broader Topix advancing 1.07%. In South Korea, the Kospi rose 1.52%, while the small-cap Kosdaq slipped 0.42%.

Australia’s S&P/ASX 200 was largely flat, edging 0.05% lower. Meanwhile, Hong Kong's Hang Seng index futures were at 22,990, indicating a stronger opening compared with the previous close of 22,881.02.

Gift Nifty Today

Gift Nifty was trading around 23,994 level, a discount of nearly 16 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

Wall Street ended June on a strong note on Tuesday, with the S&P 500 and Nasdaq posting their biggest quarterly gains since 2020, as investor optimism over economic resilience and corporate earnings outweighed concerns surrounding the Middle East conflict. The Dow Jones Industrial Average also recorded its strongest quarterly performance since 2022.

The major indexes also closed higher on the day, with the Dow notching a record closing high for the second consecutive session. Technology stocks led the rally among S&P 500 sectors, while the Philadelphia Semiconductor Index surged 3.9%.

The Dow Jones Industrial Average advanced 136.46 points, or 0.26%, to close at 52,319.20. The S&P 500 climbed 58.93 points, or 0.79%, to 7,499.36, while the Nasdaq Composite jumped 393.58 points, or 1.52%, to end at 26,213.72.

US-Iran Talks

Investor sentiment has recently been supported by growing optimism that efforts to bring the Iran conflict to a lasting end are making progress, despite ongoing military tensions.

On June 17, Iran and the U.S. signed a memorandum of understanding aimed at ending the four-month-long conflict. However, renewed exchanges of fire over the weekend have cast doubt on the agreement. Adding to the uncertainty, a Qatari official was quoted as saying by Reuters that a senior US envoys currently in Doha are not expected to hold a high-level meeting with Iranian officials.

Fall in Japanese Yen

The Japanese yen slid to a fresh 40-year low against the US dollar on Wednesday, while Dow futures edged lower on Tuesday night after the 30-stock index recorded its strongest first-half performance in five years.

The yen weakened to 162.28 per dollar, according to LSEG data, extending its losses from the previous session as traders remained watchful for any potential intervention by Japanese authorities.

Gold Rate Today

Gold traded above the $4,000-an-ounce mark as investors assessed the outlook for US monetary policy after a fresh batch of economic data. The precious metal has declined about 24% since the Iran conflict erupted in late February, slipping below key technical support levels, including the 200-day moving average that is widely viewed as a gauge of long-term momentum.

Spot gold was largely unchanged at $4,013.75 an ounce, while silver gained 1.2% to trade at $58.98 an ounce.

Crude Oil Prices

Oil prices edged higher in early trading on Wednesday after reports that Iran would not hold talks with US envoys, raising fresh concerns over the fragile interim ceasefire between the two nations following their four-month-long conflict.

Brent crude futures gained 50 cents, or 0.69%, to $73.45 a barrel, while US West Texas Intermediate (WTI) crude advanced 63 cents, or 0.91%, to $70.13 a barrel.

Dollar

The US dollar strengthened on Tuesday, sending the Japanese yen to its weakest level since 1986 and fuelling speculation that Japanese authorities may be nearing direct market intervention.

The greenback touched a high of 162.66 yen during the session and was last trading 0.4% higher at 162.59 yen. The dollar has been supported by growing market expectations of another interest rate hike by the U.S. Federal Reserve. Persistent inflation above the Fed's target, continued economic resilience, and the central bank's latest quarterly projections—which showed that nine of the 19 policymakers expect another rate increase before the end of the year—have reinforced the currency's strength.

(With inputs from Agencies)

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