Benchmark indices of the Indian stock market, Sensex and Nifty 50, are likely to open higher on Thursday after the overnight global markets rallied amid reports that Iran has made a secret diplomatic outreach for talks to end the war.

Asian markets surged, while the US stock market closed higher overnight, driven by strong gains in technology stocks.

However, on Wednesday, the Indian stock market extended its decline as intensifying US–Israel clashes with Iran pushed oil prices to a 19-month high and raised fears of a prolonged conflict.

Domestic Market Recap

On Wednesday, Indian indices closed red:

• Sensex crashed by 1,122.66 points (1.40%) to close at 79,116.19
• Nifty 50 moved down by 385.20 points (1.55%) to settle at 24,480.50

Gift Nifty

Gift Nifty was trading near 24,740, around 156 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

On Friday, the US stock market closed higher, tracking gains led by technology stocks. 

• The Dow Jones Industrial Average gained by 238.14 points (0.49%) to close at 48,739.41.
• S&P 500 up by 52.87 points (0.78%), ending at 6,869.50.
• The Nasdaq Composite was lower by 290.79 points (1.29%), finishing at 22,807.48.

Crude Oil Prices

• Brent crude soared by 2.38% to $83.34/barrel
• US West Texas Intermediate (WTI) crude was trading 2.60% higher at $76.60/barrel

Overnight Major Global Events Driving Sentiment

1. US–Israel–Iran War: The conflict in the Middle East has reached a critical turning point as the United States and Israel step up their joint military campaign targeting Iranian power structures. U.S. Defence Secretary Pete Hegseth confirmed that US forces sank an Iranian warship in international waters, marking a major escalation in the conflict.
2. US Private Payrolls: US private payrolls recorded their strongest increase in seven months in February, according to ADP’s national employment report. Private sector employment rose by 63,000 jobs last month, the biggest gain since July 2025, following a downwardly revised increase of 11,000 jobs in January. 
3. China Growth Target: China has set its economic growth target for 2026 at 4.5%–5%, slightly lower than the 5% growth achieved last year and the least ambitious target since 1991. The government also plans to maintain the budget deficit at around 4% of gross domestic product (GDP) this year, unchanged from the record level set in 2025, according to an annual work report reviewed by Bloomberg.
4. US Fed Chair: US President Donald Trump has officially nominated Kevin Warsh as the next chairman of the Federal Reserve. If the Senate confirms his nomination, Warsh will replace current Fed Chair Jerome Powell and serve a four-year term.

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