GIFT Nifty Signals Weak Start; US-Iran Tensions, Oil Surge and Gold Stability Shape Market Mood

GIFT Nifty Signals Weak Start; US-Iran Tensions, Oil Surge and Gold Stability Shape Market Mood​

Indian Stock Market Likely to Open Cautious​

The Indian stock market is expected to begin Tuesday’s session on a cautious note as investors track escalating tensions between the United States and Iran, along with movements in global commodities and equities.

GIFT Nifty was trading near the 22,966 mark, reflecting a discount of about 91 points compared to the previous close of Nifty futures. This indicates a likely subdued opening for benchmark indices Sensex and Nifty 50.

Strong Close in Previous Session​

Despite global uncertainties, Indian equities ended Monday on a strong footing. Both benchmark indices advanced over 1 percent.

The Sensex climbed 787.30 points, or 1.07 percent, to settle at 74,106.85. The Nifty 50 rose 255.15 points, or 1.12 percent, to close at 22,968.25.

Ajit Mishra, SVP Research at Religare Broking Ltd, advised caution amid ongoing volatility. He noted that traders should focus on stock-specific opportunities, favoring stronger counters for long positions while considering weaker stocks for short trades.

Asian Markets Trade Higher​

Asian equities moved higher on Tuesday, supported by overnight gains in US markets, even as geopolitical concerns remain in focus.

Japan’s Nikkei 225 advanced 0.26 percent and the Topix gained 0.23 percent. South Korea’s Kospi surged 1.5 percent, while the Kosdaq rose 0.85 percent. Hong Kong markets remained closed due to the Easter holiday.

Wall Street Ends Higher​

US stock markets closed in positive territory on Monday as investors monitored potential progress toward a US-Iran ceasefire.

The Dow Jones Industrial Average rose 165.21 points to 46,669.88. The S&P 500 gained 29.33 points to close at 6,612.02, while the Nasdaq Composite added 117.16 points to end at 21,996.34.

Among major stocks, Nvidia edged higher by 0.14 percent, AMD gained 1.23 percent, Amazon rose 1.44 percent, and Apple advanced 1.15 percent. Tesla declined 2.15 percent, while Soleno Therapeutics surged 32.3 percent.

US-Iran Conflict Escalates​

Geopolitical tensions intensified after US President Donald Trump issued strong warnings to Iran, stating the country could be “taken out in one night.” The warning comes ahead of a deadline regarding the reopening of the Strait of Hormuz.

Iran has indicated that it may retaliate against potential strikes by escalating attacks on energy infrastructure in the Gulf region, raising concerns about global supply disruptions.

US Services Sector Growth Slows​

Economic data from the United States showed a moderation in services sector growth.

The ISM nonmanufacturing PMI declined to 54.0 in March from 56.1 in February. This was below expectations of 54.9, indicating a slight slowdown in expansion.

Japanese Bond Yields Remain Elevated​

Japanese government bond yields remained largely steady after recent gains.

The 10-year yield held at 2.425 percent after reaching a 27-year high. The 20-year yield rose to 3.350 percent, while shorter-duration yields showed marginal movement.

Crude Oil Prices Extend Gains​

Oil prices continued to rise amid concerns over potential supply disruptions linked to the Strait of Hormuz.

Brent crude futures increased 0.5 percent to $110.34 per barrel, while US West Texas Intermediate crude climbed 1.1 percent to $113.67 per barrel.

Gold Prices Hold Steady​

Gold prices remained stable as investors stayed cautious ahead of geopolitical developments.

Spot gold stood at $4,646.69 per ounce. US gold futures for June delivery edged down 0.2 percent to $4,674.40. Meanwhile, spot silver declined 0.9 percent to $72.11 per ounce.

Key Market Triggers to Watch​

Global geopolitical developments, especially around the US-Iran situation and the Strait of Hormuz, remain critical for market direction. Alongside this, investors will closely track crude oil price movements, gold trends, and global equity cues for further signals.