The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are set to open higher on Wednesday, tracking a rally in the overnight global markets driven by hopes of a US–Iran peace deal.

Asian markets advanced, while the US stock market closed higher overnight, with the S&P 500 and Nasdaq Composite hitting record closing highs.

However, on Tuesday, the Indian stock market ended lower, as investors booked profits in select banking and financial heavyweights.

Domestic Market Recap

On Tuesday, Indian indices closed red:

• Sensex slumped by 251.61 points (0.33%) to close at 77,017.79
• Nifty 50 moved down by 86.50 points (0.36%) to settle at 24,032.80

Gift Nifty

Gift Nifty was trading near 24,306, around 200 points higher 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 Tuesday, with the S&P 500 and Nasdaq Composite reaching record closing highs, supported by a steady US–Iran ceasefire and strong quarterly earnings.

• The Dow Jones Industrial Average gained by 356.35 points (0.73%) to close at 49,298.25.
• S&P 500 up by 58.47 points (0.81%), ending at 7,259.22.
• The Nasdaq Composite was higher by 258.32 points (1.03%), finishing at 25,326.12.

Crude Oil Prices

• Brent crude slipped by 1.38% to $108.35/barrel
• US West Texas Intermediate (WTI) crude was trading 1.47% lower at $100.77/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: US President Donald Trump said he would temporarily pause the “Project Freedom” operation that escorts ships through the Strait of Hormuz, citing significant progress toward a comprehensive agreement with Iran. However, he confirmed that the broader blockade would remain in place while negotiations continue.
2. US PMI: The Institute for Supply Management reported that its non-manufacturing PMI for April came in at 53.6, slightly below the market estimate of 53.7, indicating continued but modest expansion in the services sector.
3. US Treasury Yields: US Treasury Bonds yields declined alongside falling crude oil prices. The 10-year yield dropped 3 basis points to 4.416%, the 30-year yield fell 4 basis points to 4.985%, and the 2-year yield eased 2.4 basis points to 3.938%.
4. US Job Openings: US Job Openings fell in March, reflecting softer labour demand. Openings declined by 56,000 to 6.866 million, while the job openings rate slipped to 4.1% from 4.2% in February.

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