Benchmark domestic indices, Sensex and Nifty 50, are likely to begin Wednesday’s session on a cautious footing amid mixed global cues. While Asian markets traded in the green, US stocks declined overnight, with the S&P 500 snapping a six-day winning streak.

Back home, Indian markets closed lower on Tuesday, marking a third straight day of losses.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex stumbled by 872.98 points (-1.06%) to close at 81,186.44
• Nifty 50 moved down by 261.55 points (-1.05%) to settle at 24,683.90

Gift Nifty

Gift Nifty was trading near 24,801, around 26 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stock market closed in the negative over growing Treasury yields, along with the US sovereign debt profile in focus:

• Dow Jones: 114.83 pts (-0.27%) to 42,677.24
• S&P 500: 23.14 pts (-0.39%) to 5,940.46
• Nasdaq closed 0.38% lower by 72.75 at 19,142.71

Gold Prices

The price of gold increased as the dollar dropped to a two-week low, prompting investors to look for safety amid US fiscal uncertainty:

• Spot gold increased by 0.4% to $3,300.72/oz 
• US gold futures gained by 0.6% to $3,304

Crude Oil Prices

Crude oil prices surged over 1% following reports that Israel is planning an attack on Iran’s nuclear sites. Brent crude July contracts rose 1.28% to $66.22 per barrel, while US West Texas Intermediate (WTI) July futures advanced 1.42% to $62.91 per barrel.

Major Global Events Driving Sentiment

1. US Treasury Yields: Yields on longer-term US Treasury securities inched up due to ongoing fiscal concerns in the country. The yield on the benchmark 10-year Treasury note rose by 0.2 basis points to 4.477%, while the 30-year bond yield increased by 2.3 basis points to 4.965%. During Monday’s session, the 30-year yield hit an intraday high of 5.037%, the highest level since November 2023.
2. Japan Trade Deficit: Japan’s exports increased for the seventh consecutive month in April, though shipments to the US declined. Overall exports rose 2% year-on-year, aligning with market forecasts but slowing from the 4% growth seen in March. Imports declined by 2.2%, a smaller drop than the expected 4.5%. As a result, Japan recorded a trade deficit of 115.8 billion yen ($802.44 million), falling short of expectations for a surplus of 227.1 billion yen.

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