Indian stock market: 10 key things that changed for market overnight- Gift Nifty, India-Pakistan conflict to trade deals

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday amid escalating conflict between India and Pakistan after Indian Armed Forces conducted ‘Operation Sindoor’, striking terrorist infrastructure in Pakistan.

Asian markets traded higher on potential US-China trade talks, while the US stock market ended lower overnight.

On Tuesday, the Indian stock market ended lower amid escalating tensions between India and Pakistan, with the Nifty 50 closing below 24,400 level.

The Sensex dropped 155.77 points, or 0.19%, to close at 80,641.07, while the Nifty 50 settled 81.55 points, or 0.33%, lower at 24,379.60.

“Weak global market cues weighed on sentiment and pushed local indices in deep red towards the close but ended off lows amid profit taking in banking, realty and oil & gas shares. Investors continue to maintain caution amid worries over the skirmishes on the Indo-Pak border, while falling crude oil prices indicate that a slowing global economy going ahead will hit demand,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on potential US-China trade talks. Japan’s Nikkei 225 gained 0.22%, while the Topix rose 0.38%. South Korea’s Kospi added 0.32% and the Kosdaq fell 0.7%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 24,350 level, a discount of nearly 81 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market ended lower for a second straight session on Tuesday.

The Dow Jones Industrial Average declined 389.83 points, or 0.95%, to 40,829.00, while the S&P 500 fell 43.48 points, or 0.77%, to 5,606.90. The Nasdaq Composite closed 154.58 points, or 0.87%, lower at 17,689.66.

Eli Lilly shares plunged 5.6%, Moderna share price cracked 12.3%, Vertex Pharmaceuticals stock price tumbled 10%, while Constellation Energy shares jumped 10.3%.

India-Pakistan Conflict

The Indian Armed Forces launched ‘Operation Sindoor’ early on Wednesday, striking terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). The Ministry of Defence stated that nine sites were hit during the mission, which was described as “focused, measured and non-escalatory” in nature. The strikes were aimed at specific terrorist camps used to plan and direct attacks on Indian soil.

US-China Trade Talks

US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s top economic official in Switzerland on Saturday, in what could be a first step toward resolving a trade war disrupting the global economy.

India-UK Trade Deal

India and the United Kingdom decided on a landmark free trade agreement, wherein India will cut its automotive tariffs to 10% from its current level of more than 100%, as per the report. The trade agreement also states that India will slash its import duties for UK goods, including whisky, gin, cosmetics and medical devices.

US Trade Deficit

The U.S. trade deficit widened to a record high in March. The trade gap jumped 14.0%, or $17.3 billion, to a record $140.5 billion. Economists polled by Reuters had forecast the trade deficit would rise to $137.0 billion.

PBOC Interest Rates

China’s central bank announced plans to cut key interest rates. China will cut interest rates by 10 basis points and lower the reserve requirement ratio by 50 basis points, People’s Bank of China (PBOC) governor Pan Gongsheng said at a press briefing.

Gold Prices

Gold prices fell as optimism over potential US-China trade talks weakened demand for safe-haven assets. Spot gold price declined 1.3% to $3,386.36 an ounce, while US gold futures fell 0.8% to $3,395.20.

Crude Oil Prices

Crude oil prices rose on signs of weakening production in the US and higher demand in Europe and China. Brent crude futures rose 0.69% to $62.58 a barrel, while US West Texas Intermediate crude rallied 0.86% to $59.60 a barrel%.

(With inputs from Reuters)

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