Gift Nifty Signals Flat Start; U.S.-Iran Talks, Wall Street Rally Among Key Overnight Cues

Gift Nifty indicated a muted opening for Indian benchmark indices on Wednesday despite positive cues from Wall Street, as investors continued to monitor geopolitical developments in West Asia and global financial markets. Gift Nifty was trading near 23,994, about 16 points below the previous close of Nifty futures, pointing to a marginally weaker start for domestic equities.

Indian markets ended lower on Tuesday. The Sensex declined 249.70 points, or 0.33%, to settle at 76,478.67, while the Nifty 50 lost 80.50 points, or 0.34%, to close at 23,865.75.

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Gift Nifty Indicates Cautious Opening

Gift Nifty remained below the previous Nifty futures close in early trade, suggesting a flat-to-negative opening for the domestic market. Investors are expected to keep an eye on overseas developments and commodity prices for fresh direction.

Asian Markets Trade Mixed

Asian equities showed a mixed trend on Wednesday. Japan’s Nikkei 225 gained 1.79%, while the broader Topix advanced 1.07%. South Korea’s Kospi rose 1.52%, although the Kosdaq slipped 0.42%. Australia’s S&P/ASX 200 traded marginally lower by 0.05%, while Hang Seng futures indicated a stronger opening in Hong Kong.

Wall Street Ends Quarter On Strong Note

U.S. equities extended their rally overnight, with all three major indices finishing higher. The Dow Jones Industrial Average rose 136.46 points, or 0.26%, to 52,319.20. The S&P 500 rose 58.93 points, or 0.79%, to 7,499.36. The Nasdaq Composite was up 393.58 points, or 1.52%, at 26,213.72. Technology stocks led the gains, with the Philadelphia Semiconductor Index climbing 3.9%.

U.S.-Iran Talks Remain In Focus

Markets continued to assess developments surrounding U.S.-Iran negotiations. According to Reuters, optimism over a lasting resolution has weakened after renewed military exchanges, while a Qatari official said senior U.S. envoys currently in Doha are not expected to hold a high-level meeting with Iranian representatives.

Japanese Yen Slides Further

The Japanese yen weakened to 162.28 against the U.S. dollar, marking its lowest level in around four decades, according to LSEG data. The currency’s decline has renewed attention on the possibility of intervention by Japanese authorities.

Gold Holds Above $4,000

Gold traded above the $4,000-an-ounce level as investors assessed the outlook for U.S. monetary policy following recent economic data. Spot gold was little changed at $4,013.75 per ounce, while silver rose 1.2% to $58.98 per ounce.

Crude Oil Moves Higher

Crude oil prices edged up after reports suggested Iran was unlikely to hold talks with U.S. officials, raising concerns over the durability of the ceasefire. Brent crude gained 0.69% to $73.45 a barrel, while U.S. WTI crude rose 0.91% to $70.13 a barrel.

Dollar Remains Firm

The U.S. dollar strengthened against major currencies, supported by expectations that the Federal Reserve could keep interest rates elevated for longer. The stronger dollar, combined with geopolitical developments and mixed global market trends, is likely to remain among the key factors influencing sentiment when Indian markets open on Wednesday.