The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Wednesday as investors assess mixed overnight global market signals and remain cautious while awaiting further clarity on the US–Iran peace agreement.

Asian markets traded lower, while the US stock market ended on a mixed note overnight, weighed down by selling pressure in technology stocks.

Moreover, on Tuesday, the Indian stock market extended its winning streak for a third consecutive session, as investors welcomed the US–Iran peace deal and the subsequent decline in crude oil prices, which boosted market sentiment.

Domestic Market Recap

On Tuesday, Indian indices ended green:

• Sensex soared by 544.15 points (0.71%) to close at 76,808.48
• Nifty 50 moved up by 135.25 points (0.57%) to settle at 23,989.15

Gift Nifty

Gift Nifty was trading near 24,032, around 31 points higher than the previous Nifty futures close, hinting at a muted start for Indian markets.

Overnight Wall Street Performance

The US stock market ended on a mixed note on Tuesday, as continued selling in technology stocks weighed on investor sentiment and limited broader market gains. Weakness in major tech names offset strength in other sectors, leaving Wall Street indices mixed at the close.

• The Dow Jones Industrial Average soared by 328.64 points (0.64%) to close at 51,999.67.
• S&P 500 was down by 42.94 points (0.57%), ending at 7.511.35.
• The Nasdaq Composite was lower by 307.60 points (1.15%), finishing at 26,376.34.

Crude Oil Prices

• Brent crude gained by 0.49% to $79.35/barrel
• US West Texas Intermediate (WTI) crude was trading 0.51% higher at $76.44/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran Peace Deal: Iran is expected to receive significant economic incentives under its agreement with the United States. According to the final draft, Tehran will be allowed to resume oil exports immediately, gain access to a $300 billion development fund, and eventually unlock its frozen overseas assets as part of the peace deal.
2. Japan Trade Deficit: Japan’s exports rose 17% year-on-year in May, surpassing market expectations of a 16.2% increase and accelerating from April’s 14.8% growth. Imports increased 12.5% during the month, slightly below the forecast of 12.8%. As a result, Japan recorded a trade deficit of 378.7 billion yen ($2.36 billion) in May.

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