The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note on Tuesday as investors closely monitor the ongoing US-Iran peace talks overnight.

Asian markets traded lower on Monday, while the US stock market ended largely unchanged, reflecting a cautious global sentiment.

The Indian stock market rebounded sharply on Monday, with broad-based buying lifting both benchmark indices nearly 1% and helping them snap a five-session losing streak.

Domestic Market Recap

On Monday, Indian indices ended in the green:

• Sensex soared by 776 points (1.02%) to close at 76,835.78.
• Nifty 50 moved up by 229 points (0.96%) to settle at 23,995.95

Gift Nifty

Gift Nifty was trading near 24,000, around 28 points lower than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

The US stock market ended mixed on Monday as investors turned cautious ahead of quarterly earnings from major technology companies due later this week. Market sentiment also remained subdued as elevated crude oil prices fueled inflation concerns, raising expectations that the Federal Reserve could maintain a hawkish stance on interest rates.

• The Dow Jones Industrial Average gained by 262.83 points (0.51%) to close at 52,210.08.
• S&P 500 was up by 1.20 points (0.01%), ending at 7.413.18.
• The Nasdaq Composite was lower by 43.74 points (0.18%), finishing at 24,932.08.

Overnight Major Global Events Driving Sentiment

1. Sell-off in US Chip Stocks: US chip stocks extended their losses for a third straight session on Monday following a series of negative developments in the sector. Nvidia and AMD fell 5% each, while Seagate declined 4% ahead of its quarterly earnings announcement, dragging the broader semiconductor segment lower.
2. US-Iran War: President Donald Trump has decided to delay military strikes against Iran to allow more time for diplomatic efforts, according to an Axios report cited by Bloomberg. However, it remains unclear whether the two sides have held any meaningful negotiations. Meanwhile, officials from Iran and Oman are reportedly holding discussions to restore shipping through the Strait of Hormuz, a vital trade route that connects the Persian Gulf to global markets. During peacetime, the strategic waterway carries nearly one-fifth of the world’s daily oil supply.

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