The Indian stock market is expected to open on a weak note on Tuesday, following mixed cues from global markets, as US-Iran tensions escalated and inflation concerns led to higher US Treasury yields. The trends on Gift Nifty also signal a negative start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 24,309 level, a discount of nearly 84 points from the Nifty futures' previous close.
On Monday, the Indian stock market ended lower, with the benchmark Nifty 50 slipping below 24,300 level.
The Sensex declined 281.09 points, or 0.36%, to close at 77,728.16, while the Nifty 50 ended 78.35 points, or 0.32%, lower at 24,287.65.
Asian Markets
Asian markets traded mixed, following overnight weakness on Wall Street, after US President Donald Trump ruled out extending a 60-day peace agreement with Iran.
Japan's Nikkei 225 fell 0.36%, while the Topix rose 0.13%. South Korea's Kospi rallied 2.58%, and Kosdaq added 0.62%. Hong Kong's Hang Seng index futures indicated a lower opening.
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Wall Street
US stock market ended lower on Monday, as oil prices rose as the US and Iran appeared no closer to a peace deal.
The Dow Jones Industrial Average declined 272.63 points, or 0.51%, to 53,459.78, while the S&P 500 fell 40.70 points, or 0.52%, to 7,745.06. The Nasdaq Composite closed 84.25 points, or 0.31%, lower at 26,644.91.
US Treasury Yields
US Treasury yields surged, with the 30-year bond yield hitting highest in almost two decades. The US 10-year Treasury yield rose nearly 4 bps to 4.728%, while the 30-year bond yield rallied 6 bps to 5.315%, its highest in more than two decades. The yield on 2-year T-note rose by nearly 1.5 bps to 4.179%.
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US-Iran Peace Deal
The prospects of a US-Iran peace deal suffered a fresh setback, with President Donald Trump saying he's not interested in extending the memorandum of understanding signed in June with Iran. The US-Iran ceasefire agreement, which technically expired on Monday, was meant to give Washington and Tehran a window to reach a more lasting peace deal within 60 days.
Crude Oil Prices
Crude oil prices traded with minor gains after Iran said it would shift to a “fully offensive” military posture. Brent futures were flat at $90.82 a barrel, while WTI crude futures rose 0.17% to $ 84.64 a barrel.
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