The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are set to open cautiously on Tuesday as investors evaluate the latest developments in the US-Iran war in the Middle East.

Asian markets traded higher, while the US stock market advanced overnight, with all three Wall Street indices closing in positive territory.

Moreover, on Monday, the Indian stock market delivered strong gains, with both benchmark indices rising more than 1% each.

Domestic Market Recap

On Monday, Indian indices closed green:

• Sensex gained by 787.30 points (1.07%) to close at 74,106.85
• Nifty 50 moved up by 255.15 points (1.12%) to settle at 22,968.25

Gift Nifty

Gift Nifty was trading near 22,966, around 91 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Monday as investors looked for signs of progress in a potential US–Iran ceasefire deal.

• The Dow Jones Industrial Average gained by 165.21 points (0.36%) to close at 46,669.88.
• S&P 500 up by 29.33 points (0.45%), ending at 6,612.02.
• The Nasdaq Composite was higher by 117.16 points (0.54%), finishing at 21,996.34.

Crude Oil Prices

• Brent crude gained by 0.5% to $110.34/barrel
• US West Texas Intermediate (WTI) crude was trading 1.1% higher at $113.67/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: US President Donald Trump escalated his threats against Iran, saying the country could be “taken out in one night” as the Tuesday deadline to reopen the Strait of Hormuz approaches. Iran warned that it would retaliate by intensifying attacks on Gulf energy infrastructure if the US targets civilian sites.
2. US Services PMI: Growth in the US services sector slowed in March, as the ISM Non-manufacturing PMI fell to 54.0 from 56.1 in February, missing economists’ expectations of 54.9, according to a Reuters poll.
3. Japanese Bond Yields: Japanese Government Bond yields remained largely steady, with the benchmark 10-year yield holding at 2.425% after reaching a 27-year high on Monday. Meanwhile, the 20-year yield rose 2 basis points to 3.350%, the two-year yield stayed unchanged at 1.395%, and the five-year yield edged up 0.5 basis points to 1.830%.

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