The Indian stock market is likely to open on a flat note on Wednesday as investors take cues from mixed overnight global market trends.

Asian markets traded mixed, while the US stock market extended its overnight rally, supported by continued buying across major sectors.

Moreover, on Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 slipping below the 23,900 mark amid broad-based selling pressure.

Domestic Market Recap

On Tuesday, Indian indices ended red:

• Sensex slumped by 249.70 points (0.33%) to close at 76,478.67.
• Nifty 50 moved down by 80.50 points (0.34%) to settle at 23,865.75

Gift Nifty

Gift Nifty was trading near 23,994, around 16 points lower than the previous Nifty futures close, hinting at a muted start for Indian markets.

Overnight Wall Street Performance

Wall Street ended June on a strong note on Tuesday, with all three major indices closing higher. The S&P 500 and Nasdaq delivered their strongest quarterly gains since 2020, while the Dow Jones Industrial Average posted its best quarterly performance since 2022. Investors looked past geopolitical tensions in the Middle East, focusing instead on the resilience of the US economy and robust corporate earnings. 

The Dow also recorded its second consecutive record closing high, while technology stocks led the market rally, driving the Philadelphia Semiconductor Index up 3.9%.

• The Dow Jones Industrial Average gained by 136.46 points (0.26%) to close at 52,319.20.
• S&P 500 was up by 58.93 points (0.79%), ending at 7.499.36.
• The Nasdaq Composite was higher by 393.58 points (1.52%), finishing at 26,213.72.

Crude Oil Prices

• Brent crude gained by 0.69% to $73.45/barrel
• US West Texas Intermediate (WTI) crude was trading 0.91% higher at $70.13/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran Talks: Investor sentiment has remained supported by optimism that diplomatic efforts to bring the US–Iran conflict to a lasting end are progressing, despite continued military tensions. On June 17, the United States and Iran signed a memorandum of understanding aimed at ending the four-month-long conflict. However, renewed exchanges of fire over the weekend have raised fresh doubts about the agreement. Adding to the uncertainty, a Qatari official told Reuters that senior US envoys currently in Doha are not expected to hold a high-level meeting with Iranian officials.
2. Japanese Yen Weakens: The Japanese yen fell to a fresh 40-year low against the US dollar on Wednesday, reflecting continued pressure from widening interest rate differentials and persistent weakness in the currency. The yen weakened to 162.28 per dollar, according to LSEG data, extending its losses from the previous session as traders closely monitored the possibility of intervention by Japanese authorities. Meanwhile, Dow futures edged lower on Tuesday night after the 30-stock index posted its strongest first-half performance in five years.

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