The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are set to open lower on Thursday as investors react to mixed overnight global cues and fading optimism over the fragile two-week US-Iran ceasefire amid reports of violations of its terms.

Asian markets traded lower, while the US stock market surged overnight, with the Dow Jones Industrial Average posting its biggest single-session percentage gain in a year.

However, on Wednesday, the Indian stock market closed with strong gains, supported by the US-Iran ceasefire deal and the Reserve Bank of India policy announcement.

Domestic Market Recap

On Wednesday, Indian indices closed green:

• Sensex skyrocketed by 2,946.32 points (3.95%) to close at 77,568.90
• Nifty 50 moved up by 873.70 points (3.78%) to settle at 23,997.35

Gift Nifty

Gift Nifty was trading near 23,940, around 117 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market closed sharply higher on Wednesday as a two-week ceasefire agreement between the United States and Iran boosted investor sentiment.

• The Dow Jones Industrial Average soared by 1,326.33 points (2.85%) to close at 47,910.79.
• S&P 500 up by 165.98 points (2.51%), ending at 6,782.83.
• The Nasdaq Composite was higher by 617.15 points (2.80%), finishing at 22,635.00.

Crude Oil Prices

• Brent crude gained by 2.73% to $97.34/barrel
• US West Texas Intermediate (WTI) crude was trading 3.17% higher at $97.40/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran Ceasefire: The White House announced that the US will hold direct talks with Iran, with Vice President JD Vance leading the American delegation to Islamabad. The first round of discussions is scheduled for Saturday morning local time. However, tensions persisted in the Middle East, as sporadic fighting continued, including Iranian strikes on Gulf states, while the Strait of Hormuz remained largely blocked. Meanwhile, Israel carried out its heaviest strikes on Lebanon so far, prompting Iran to issue fresh threats of retaliation.

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