The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday after overnight global markets rallied, following comments by US President Donald Trump that the US-Iran war could be nearing its end.

Asian markets traded higher, while the US stock market rallied overnight as crude oil prices declined after Trump’s remarks, easing concerns about rising inflation.

However, on Monday, the Indian stock market ended with massive losses as investors sold stocks across sectors amid escalating tensions in the US-Iran war and a sharp surge in crude oil prices.

Domestic Market Recap

On Monday, Indian indices closed red:

• Sensex crashed by 1,352.74 points (1.71%) to close at 77,566.16
• Nifty 50 moved down by 422.40 points (1.73%) to settle at 24,028.05

Gift Nifty

Gift Nifty was trading near 23,390, around 267 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market ended higher on Monday after staging a final-hour rebound, as Donald Trump indicated that the US-Israeli war against Iran could be nearing its end.

• The Dow Jones Industrial Average gained by 239.25 points (0.5%) to close at 47,740.80.
• S&P 500 up by 55.97 points (0.83%), ending at 6,794.99.
• The Nasdaq Composite was higher by 308.27 points (1.38%), finishing at 22,695.95.

Crude Oil Prices

• Brent crude slumped by 7.39% to $91.65/barrel
• US West Texas Intermediate (WTI) crude was trading 6.86% lower at $88.27/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: Donald Trump said the US-Iran war in the Middle East could be nearing its end. He initially suggested that the military campaign was “very complete, pretty much,” but later warned that American forces could escalate attacks if Tehran attempts to disrupt global energy supplies.
2. Japan GDP: Japan’s economy expanded faster than previously estimated in the final quarter of 2025. Gross domestic product (GDP) grew 1.3%, significantly higher than the preliminary estimate of 0.2% and slightly above economists’ median forecast of 1.2%. On a quarter-on-quarter basis without annualisation, Japan’s GDP increased 0.3%, matching economists’ expectations and improving from the earlier estimate of a 0.1% rise.
3. Japanese Bond Yields: Japanese government bonds rallied as stabilising oil prices eased concerns about inflationary pressure on the economy. The benchmark 10-year Japanese government bond yield fell 3.5 basis points to 2.150%. Meanwhile, the two-year yield slipped 0.5 bps to 1.23%, and the five-year yield declined 2 bps to 1.600%.
4. Oil Reserves: Energy ministers from the Group of Seven (G7) are set to hold a virtual meeting on Tuesday to discuss the oil supply disruption caused by the US-Iran conflict. G7 finance ministers met on Monday to consider releasing strategic reserves but did not reach a final decision.

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