From Gift Nifty, US Treasury yields, dollar to gold rates: 10 key things that changed for Indian stock market overnight

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, following weakness in global markets, as rising inflation concerns kept bond yields elevated and risk-appetite dampened due to the lack of a US-Iran peace deal.

Asian markets traded lower, while the US stock market declined overnight, with all three Wall Street indices closing in the red as Treasury yields climbed.

On Tuesday, the Indian stock market ended lower amid persisting concerns over the US-Iran war, elevated crude oil prices, and the rupee’s weakness.

The Sensex declined 114.19 points, or 0.15%, to close at 75,200.85, while the Nifty 50 settled 31.95 points, or 0.14%, lower at 23,618.00.

“Markets are likely to remain sideways-to-under pressure in the near term, as persistent weakness in the Indian rupee and elevated crude oil prices continue to weigh on overall market sentiment and limit broad-based upside momentum,” 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 lower on Wednesday amid elevated bond yields and renewed US-Iran tensions. Japan’s Nikkei 225 declined 0.88%, while the Topix fell 0.75%. South Korea’s Kospi dropped 0.52%, and the Kosdaq plunged 2.15%. Hong Kong’s Hang Seng index futures indicated a lower opening

Gift Nifty Today

Gift Nifty was trading around 23,413 level, a discount of nearly 199 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 Tuesday as Treasury yields climbed on mounting inflation concerns and cautiousness amid the lack of a peace agreement between the US and Iran.

The Dow Jones Industrial Average declined 322.24 points, or 0.65%, to 49,363.88, while the S&P 500 dropped 49.44 points, or 0.67%, to 7,353.61. The Nasdaq Composite closed 220.02 points, or 0.84%, lower at 25,870.71.

Nvidia stock price fell 0.77%, AMD shares declined 1.65%, Microsoft share price dropped 1.44%, Amazon shares lost 2.08%, Apple stock price rose 0.38%, Intel shares gained 2.43%, Micron Technology share price rallied 2.52% and Tesla stock price shed 1.43%.

US-Iran War

US President Donald Trump told lawmakers at the White House that the United States “will end the war very quickly” with Iran. Vice President JD Vance reassured that the war with Iran will not become a “forever war”.

US Treasury Yields

Yields on the US Treasury’s longest-dated bond rose to the highest level in almost two decades as mounting inflation fears raised hopes of interest rate hikes. The 30-year Treasury bond yield rose as much as seven basis points to 5.20%, a level last seen on the eve of the 2007 global financial crisis. It was last at around 5.18%.

Japanese Bond Yields

Japanese government bond (JGB) yields held near multi-decade and record highs. The benchmark 10-year JGB yield fell 0.5 bps to 2.795% after hitting a 29-year peak. The 40-year JGB yield hit a record high of 4.395% and the 20-year JGB yield climbed to 3.8%, the highest since August 1996. The two-year yield stood at 1.44%, the highest since May 1995. The five-year yield was steady at 2.025% after reaching an all-time high, Reuters reported.

China Interest Rates

China left benchmark lending rates unchanged for the 12th consecutive month in May, in line with market expectations. The one-year loan prime rate (LPR) was kept at 3.00%, while the five-year LPR was unchanged at 3.50%.

Dollar

The US dollar was steady near a six-week high. Against a basket of currencies, the dollar was steady at 99.306. The euro last bought $1.1608, and the British pound was at $1.3398. The Japanese yen was last at 159.03 per US dollar, its weakest level since April 30.

Gold Rate Today

Gold prices rose on optimism of a potential US-Iran peace agreement. Spot gold rose 0.4% to $4,499.69 per ounce, while US gold futures for June delivery fell 0.2% to $4,502.30. Spot silver price rose 1% to $74.55 per ounce.

Crude Oil Prices

Crude oil prices eased after US President Donald Trump again asserted the war with Iran will end “very quickly”. Brent crude oil futures fell 0.4% to $110.83 a barrel, while US West Texas Intermediate futures were down 0.3% to $103.88.

(With inputs from Agencies)