The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower and extend losses, following weakness in global markets, as rising crude oil prices due to the escalating US-Iran war fueled inflation concerns and spooked investors.
Asian markets traded lower, while the US stock market ended mixed overnight after tame inflation data.
On Wednesday, the Indian stock market ended sharply lower amid cautiousness over the US-Iran war and profit booking.
The Sensex crashed 1,342.27 points, or 1.72%, to close at 76,863.71, while the Nifty 50 settled 394.75 points, or 1.63%, lower at 23,866.85.
“Indian equities are likely to remain volatile driven by developments in the West Asia conflict, sharp movements in crude oil prices and continuous foreign fund outflows,” 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 Thursday, following overnight losses on Wall Street, amid surging crude oil prices and escalating US-Iran war. Japan’s Nikkei 225 declined 1.6%, while the Topix fell 1.34%. South Korea’s Kospi dropped 0.75%. Hong Kong Hang Seng index futures indicated a lower start.
Gift Nifty Today
Gift Nifty was trading around 23,813 level, a discount of nearly 125 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
wall street
The US stock market ended mixed on Wednesday as markets largely looked past a tame inflation report, amid cautiousness over the US-Israeli war on Iran.
The Dow Jones Industrial Average declined 289.24 points, or 0.61%, to 47,417.27, while the S&P 500 fell 5.68 points, or 0.08%, to 6,775.80. The Nasdaq Composite closed 19.03 points, or 0.08%, higher at 22,716.14.
Nvidia stock price rose 0.66%, AMD shares gained 0.79%, Intel share price advanced 2.57%, Microsoft shares fell 0.22%, while Tesla stock price rallied 2.15%. Oracle shares jumped 9.2%, Ares Management stock dropped 4.8% and Apollo Global share price declined 1.9%. Campbell shares tumbled 7.1% and AeroVironment stock price slid 6.3%.
US-Iran War
The United States and Iran have signaled no quick end to their war, with US President Donald Trump saying it was necessary to finish the job and Iran warning that the world should be ready for oil at $200 a barrel after striking tankers in Iraqi waters and other ships near the vital Strait of Hormuz, Reuters reported. Meanwhile, Israeli strikes battered Beirut’s southern suburbs after the Lebanese-armed group Hezbollah launched a volley of rockets into northern Israel.
US Inflation
US consumer prices rose moderately in February. The Consumer Price Index (CPI) rose 0.3% last month after gaining 0.2% in January. In the 12 months through February, the CPI advanced 2.4%, matching January’s increase. The increase in the CPI was in line with economists’ expectations.
IEA Oil Release
The International Energy Agency (IEA) announced that it will release 400 million barrels of oil from its emergency stockpile available to the market amid disruptions due to the US-Iran war in the Middle East.
US Treasury Yields
US treasury yields rose on Wednesday as higher oil prices stoked inflation fears and pushed back expectations for Federal Reserve rate cuts. The 2-year note yield was up 6.3 basis points at 3.632%, after earlier reaching 3.648%, the highest since September 26. The benchmark US 10-year yield rose 7 basis points to 4.206% and earlier got to 4.226%, the highest since February 9.
dollars
The US dollar firmed after growing inflation worries dented US Federal Reserve interest rate cut hopes. The US dollar index rose 0.13% to 99.36 against the basket of currencies.
Crude Oil Prices
Crude oil prices jumped as Iraq stopped operations at its oil ports after two tankers were targeted. Brent crude oil price surged 7.40% to $98.79 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 6.87% to $93.34.
Gold Rate Today
Gold prices fell, pressured by a firmer dollar, while higher oil prices renewed inflation worries and dampened hopes for near-term interest rate cuts. Spot gold price declined 0.2% to $5,165.73 per ounce, while US gold futures for April delivery fell 0.2% to $5,171.40. Spot silver price was steady at $85.82 per ounce.
(With inputs from Reuters)
