Sensex and Nifty 50 are likely to open higher on Wednesday as global markets rallied overnight after Israel and Iran agreed to a ceasefire. Asian shares rose, and all three major US indices gained over 1% overnight. 

However, on Tuesday, Indian markets closed with modest gains despite profit booking at higher levels.

Domestic Market Recap

On Tuesday, Indian indices closed in the green:

• Sensex gained by 158.32 points (0.19%) to close at 82,055.11
• Nifty 50 moved up by 72.45 points (0.29%) to settle at 25,044.35

Gift Nifty

Gift Nifty was trading near 25,160, around 88 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stock market closed higher on Tuesday as investor sentiment improved following a fragile ceasefire between Israel and Iran.

• Dow Jones Industrial Average rallied by 507.24 points (1.19%) points to close at 43,089.02.
• S&P 500 up by 67.01 points (1.11%), ending at 6,092.18.
• The Nasdaq Composite was trading higher by 281.56 points (1.43%), finishing at 19,912.53.

Crude Oil Prices

Crude oil prices climbed as investors evaluated the durability of the ceasefire agreement between Iran and Israel.

• Brent crude gained by 1.09% to $67.87/barrel
• US West Texas Intermediate (WTI) crude: 1.23% to $65.16/barrel

Gold Prices

Gold prices remained steady as the tentative ceasefire between Iran and Israel reduced investors’ appetite for safe-haven assets. Spot gold held steady at $3,326.39 per ounce after touching a more than two-week low on Tuesday, while US gold futures edged up 0.2% to $3,340.

Overnight Major Global Events Driving Sentiment

1. Jerome Powell Testimony: Federal Reserve Chair Jerome Powell told Congress that higher tariffs could start pushing inflation up this summer, a period the central bank views as crucial in determining the timing of potential rate cuts. Powell noted that he and several Fed officials anticipate inflation to rise soon and emphasized that the Fed is not in a hurry to lower interest rates just yet.
2. Israel-Iran Ceasefire: Israel and Iran have agreed to a ceasefire, halting 12 days of airstrikes, following US President Donald Trump’s intervention, which included targeted strikes on Iranian nuclear sites. Both nations indicated the air war had concluded for now. Israeli Prime Minister Benjamin Netanyahu called the outcome a “historic victory,” although a US intelligence assessment suggested the strikes only delayed Iran’s nuclear program by a few months.
3. US Consumer Confidence: US consumer confidence slipped unexpectedly in June. According to the Conference Board, the confidence index fell by 5.4 points to 93.0, wiping out nearly half of May’s strong gain.

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