The Indian stock market is expected to open on a muted note on Wednesday, following a selloff in global markets, amid rising crude oil prices and a spike in global bond yields. The trends on Gift Nifty also signal a tepid start for the Indian benchmark indices, Nifty 50 and Sensex, today.
The Gift Nifty was trading around 24,206 level, a discount of nearly 24 points from the Nifty futures' previous close.
On Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 extending losses for the sixth consecutive session.
The Sensex declined 492.70 points, or 0.63%, to close at 77,235.46, while the Nifty 50 ended 132.75 points, or 0.55%, lower at 24,154.90.
“Given the prevailing uncertainty, we recommend maintaining a cautious, stock-specific approach, with greater emphasis on prudent position sizing and risk management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
He recommends market participants to utilise the declines selectively and focus on relatively stronger stocks and sectors until the broader trend stabilises.
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Here are five key factors that may drive the Indian stock market today:
Asian Markets
Asian markets traded lower amid a selloff in technology stocks, tracking their US peers. Japan's Nikkei 225 shed 2.38% while the Topix plunged 2.24%. South Korea's Kospi crashed 5.93%, while the Kosdaq slipped over 3%.
Wall Street
US stock market ended lower on Tuesday, weighed down by losses in semiconductor stocks, while Middle East tensions pushed bond yields to multiyear peaks.
The Dow Jones Industrial Average declined 116.38 points, or 0.22%, to 53,343.40, while the S&P 500 dropped 53.30 points, or 0.69%, to 7,691.76. The Nasdaq Composite closed 355.20 points, or 1.33%, lower at 26,289.71.
US Treasury Yields
US Treasury yields spiked as stalled US-Iran peace talks to end the war in the Middle East pushed crude oil prices higher, stoking inflation fears.
The yield on the benchmark US 10-year Treasury note rose 1.7 bps to 4.739%, touching its highest levels since January 2025. The 30-year bond yield rose to 5.327%, hitting its highest level in 19 years.
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US-Iran War
Tensions in the Middle East continue, with uncertainty over the US-Iran peace talks. US President Donald Trump said that no talks were taking place with Iran and insisted the Strait of Hormuz was open. However, Iran had earlier asserted that the critical waterway remained shut to shipping.
Crude Oil Prices
Crude oil prices traded higher, extending gains for the fourth straight session, amid fears of supply disruption due to the uncertainty over the opening of the Strait of Hormuz. Brent crude futures rose 0.68% to $91.64, while US West Texas Intermediate crude futures gained 0.82% to $85.64 a barrel.
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