The Indian stock market is expected to see a muted opening on Wednesday, following mixed cues from global markets, as rising crude oil prices and geopolitical tensions in the Middle East continue to weigh on investor sentiment. The trends on Gift Nifty also signal a flat start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 24,533 level, a discount of nearly 8 points from the Nifty futures' previous close.
On Tuesday, the domestic equity market ended lower, amid concerns over the elevated crude oil prices.
The Sensex dropped 388.19 points, or 0.49%, to close at 78,154.25, while the Nifty 50 settled 112.10 points, or 0.46%, lower at 24,471.70.
“Given the combination of elevated crude prices, geopolitical uncertainty, and renewed pressure on financial heavyweights, we recommend maintaining a cautious, stock-specific approach, emphasizing relative strength, disciplined position sizing, and prudent risk management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
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Here are five key things that investors must know before the opening of the Indian stock market today:
Asian Markets
Asian markets traded mixed on Wednesday, tracking overnight losses on Wall Street. Japan's Nikkei 225 rose 0.07% while the Topix gained 0.54%. South Korea's Kospi rallied 2.06%, while the Kosdaq fell 0.31%.
Wall Street
US stock market ended lower on Tuesday, amid pessimism about a potential Iran peace deal. The Dow Jones Industrial Average declined 0.34% to 53,791.85, while the S&P 500 fell 0.32% to 7,728.20. The Nasdaq closed 0.6% lower at 26,445.45.
US-Iran War Updates
The prospects for ending the Middle East war appeared to dim after the US and Yemen's Iran-aligned Houthis reported separate attacks on shipping, with Tehran saying the Strait of Hormuz would remain closed unless Washington accepts its conditions.
The US military said that its forces fired on a Panamanian-flagged ship in the Gulf of Oman that tried to evade the American blockade on Iranian ports.
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Fitch Retains India Credit Rating
Fitch Ratings retained India's sovereign credit rating at ‘BBB-' for the 20th year in a row, with a stable outlook, citing robust economic growth outlook and solid external finance fundamentals despite headwinds from the energy shock due to the West Asia conflict. The ratings agency forecast a 6.4% GDP growth in the current fiscal year, which is slower than the average 7.4% growth clocked over the past three years.
Crude Oil Prices
Crude oil prices rose amid doubts about a US-Iran peace deal and after attacks on two ships in the Strait of Hormuz fuelled supply disruption concerns. Brent futures gained 0.64% to $89.48 a barrel, while US West Texas Intermediate (WTI) crude advanced 0.78% to $83.85.
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