Overnight Stock Market Movements: Key Developments 

The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are set to open lower on Thursday as weakness in the overnight global markets weighs on sentiment after a stalemate in US–Iran peace talks pushed crude oil prices higher, and the US Federal Reserve adopted a hawkish pause.

Asian markets traded lower, while the US stock market closed on a mixed note following the Fed policy decision and earnings from major technology companies.

However, on Wednesday, the Indian stock market gave up most of its intraday gains but still ended in positive territory.

Domestic Market Recap

On Wednesday, Indian indices closed green:

• Sensex soared by 609.45 points (0.79%) to close at 77,496.36
• Nifty 50 moved up by 181.95 points (0.76%) to settle at 24,177.65

Gift Nifty

Gift Nifty was trading near 24,185, around 67 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 on a mixed note after the US Federal Reserve announced its interest-rate decision, while rising crude oil prices also influenced investor sentiment.

• The Dow Jones Industrial Average slipped by 280.12 points (0.57%) to close at 48,861.81.
• S&P 500 down by 2.82 points (0.04%), ending at 7,135.98.
• The Nasdaq Composite was higher by 9.44 points (0.04%), finishing at 24,673.24.

Crude Oil Prices

• Brent crude gained by 0.85% to $111.38/barrel
• US West Texas Intermediate (WTI) crude was trading 0.59% higher at $107.51/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: US President Donald Trump said he will maintain the naval blockade of Iran’s ports until he secures a deal addressing Tehran’s nuclear program, prolonging the standoff over the Strait of Hormuz and contributing to a global energy crunch.
2. US Fed Policy: The US Federal Reserve kept the federal funds rate unchanged at 3.5%–3.75% for the third straight meeting, citing rising inflation risks due to elevated global energy prices. Fed Chair Jerome Powell noted that it remains too early to assess the full impact of higher energy costs on inflation.
3. Japanese Bond Yields: Benchmark Japanese Government Bond yields surged to a 29-year high as global inflation concerns intensified. The 10-year yield climbed 4 basis points to 2.500%, the highest since June 1997, while the five-year yield rose 3 basis points to 1.885%.
4. US Treasury Yields: US Treasury yields jumped sharply following the Fed’s hawkish stance. The 2-year yield rose to 3.928%, while the benchmark 10-year yield increased to 4.421%, both reaching their highest levels since March 27.

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