Sensex, Nifty Poised for Higher as Global Markets React to US-Iran Ceasefire Hopes

Mixed Global Cues Guide Opening Signals for Indian Equities​

Indian stock market indices are expected to open higher on Friday, buoyed by gains observed in global markets. This positive sentiment is largely underpinned by ongoing optimism surrounding peace talks between the US and Iran. Investors are closely monitoring the implications of the fragile two-week ceasefire deal.

On the previous day, the Indian market experienced a significant downturn. The Sensex crashed 931.25 points, marking a decline of 1.20% to close at 76,631.65. Similarly, the Nifty 50 settled 222.25 points lower, or 0.93%, at 23,775.10.

Asian Trading Benchmarks Point to Positive Openings​

Asian markets traded mostly higher on Friday, despite cautious sentiment regarding the US-Iran ceasefire. Japan's Nikkei 225 showed strength, rising by 1.65%. South Korea's Kospi also rallied by 1.68%, while the Kosdaq gained 1.14%. Hong Kong's Hang Seng index futures suggested a higher opening for the region.

Adding to the bullish outlook, Gift Nifty was trading around the 23,941 level. This reading represents a premium of nearly 80 points compared to the Nifty futures' previous closing, signaling a potentially positive start for Indian indices.

Wall Street Strength Fueled by Geopolitical Easing​

The US stock market concluded Thursday on an upward trajectory. Gains were notably linked to easing worries stemming from ongoing negotiations toward a peaceful resolution to the US-Iran situation.

The Dow Jones Industrial Average rallied 275.88 points, or 0.58%, closing at 48,185.80. The S&P 500 gained 41.85 points (0.62%), reaching 6,824.66. Most significantly, the Nasdaq Composite climbed 187.42 points (0.83%) to end at 22,822.42.

Individual tech stocks saw mixed action, though Amazon jumped 5.6%. Apple stock price rose 0.61%, while Microsoft shares fell 0.34%.

Key Economic Data and Corporate Earnings Impacting Sentiment​

Global economic indicators provided a mixed picture, alongside strong corporate performance updates. The third US GDP estimate showed an increase of 0.5% at an annualized rate. This revised figure follows earlier reports of 0.7% growth in the fourth quarter.

US inflation rose in February, with the personal consumption expenditures price index climbing 0.4%. This matched the consensus forecast of 0.4% rise.

On the corporate front, TCS announced a substantial jump in net profit, increasing 28.7% to ₹ 13,718 crore from ₹ 10,657 crore Quarter-on-Quarter (QoQ). TCS's EBIT margin improved to 25.3% from 25.2% QoQ.

Commodity Movements and Currency Shifts​

Commodity markets reflected heightened geopolitical tensions. Crude oil prices rose following attacks on Saudi energy infrastructure and the ongoing closure of the Strait of Hormuz. Brent crude futures gained 0.87% to $96.75 a barrel.

Conversely, gold prices fell 0.2% to $4,757.27 an ounce, although they were noted to be heading toward a third weekly gain. Silver prices dropped 0.1% to $75.29 an ounce.

In currency terms, the US dollar index lost 1.3% so far this week, pointing to the dollar's largest weekly drop since January. The Sterling showed strength, shooting up 1.8% this week, trading above $1.3424.

Analyst Outlook: Focus on Domestic Resilience​

Analysts suggest that domestic company earnings and sectors affected by surging crude prices will be the primary focus for investors. Ankur Punj, MD & Business Head at Equirus Wealth, pointed out that domestic valuations are currently extremely favorable. He noted that the risk-reward profile is tilted toward high equity exposure, suggesting positive news could trigger a strong upswing.