The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a muted note Wednesday, following gains in the overnight global markets, despite cautiousness over the escalating US-Iran war.

Asian markets rallied, while the US stock market ended higher overnight, lifted by gains in banks and semiconductor stocks.

However, on Tuesday, the Indian stock market ended lower, weighed down by rising geopolitical tensions and elevated crude oil prices.

Domestic Market Recap

On Tuesday, Indian indices ended green:

• Sensex slumped by 561.46 points (0.72%) to close at 77,054.94.
• Nifty 50 moved down by 158.95 points (0.66%) to settle at 24,052.05

Gift Nifty

Gift Nifty was trading near 24,049, around 25 points higher than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Tuesday as strong earnings from major banks and a cooler-than-expected inflation report boosted investor sentiment.

• The Dow Jones Industrial Average gained by 10.02 points (0.02%) to close at 52,508.66.
• S&P 500 was up by 28.55 points (0.38%), ending at 7.543.89.
• The Nasdaq Composite was higher by 233.83 points (0.90%), finishing at 26,107.01.

Crude Oil Prices

• Brent crude surged by 1.72% to $86.19/barrel
• US West Texas Intermediate (WTI) crude was trading 1.4% higher at $80.40/barrel

Overnight Major Global Events Driving Sentiment

1. US-Iran War: US President Donald Trump reimposed a naval blockade on all Iranian ports and threatened to target power plants and bridges next week unless Tehran returns to negotiations. The US military also launched fresh strikes against Iran for a fourth consecutive day. Meanwhile, Iran announced that it had once again closed the Strait of Hormuz after hostilities resumed last week.
2. US Inflation: US consumer inflation cooled more than expected in June. The Consumer Price Index (CPI) rose 3.5% year-on-year, slowing from 4.2% in May. On a monthly basis, the CPI declined 0.4% after increasing 0.5% in May. Economists surveyed by Reuters had expected inflation to rise 3.8% year-on-year and fall 0.1% month-on-month.

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