Overnight Stock Market Movements: Key Developments 

The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are likely to open lower on Monday as weakness in the overnight global markets and escalating US–Iran tensions in the Middle East pushed crude oil prices higher and weakened risk appetite.

Asian markets declined, while the US stock market closed lower last week, with all three major Wall Street indices falling more than 1% each.

Moreover, on Friday, the Indian stock market ended lower as investors booked profits amid a sharp rise in crude oil prices and weakness in the Indian rupee.

Domestic Market Recap

On Friday, Indian indices closed red:

• Sensex slipped by 160.73 points (0.21%) to close at 75,237.99
• Nifty 50 moved down by 46.10 points (0.19%) to settle at 23,643.50

Gift Nifty

Gift Nifty was trading near 23,567, around 76 points lower than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Overnight Wall Street Performance

The US stock market closed sharply lower on Friday as surging crude oil prices and rising Treasury yields weighed heavily on investor sentiment.

• The Dow Jones Industrial Average slipped 537.29 points (1.07%) to close at 49,526.17.
• S&P 500 was down by 92.74 points (1.24%), ending at 7,408.50.
• The Nasdaq Composite was lower by 410.08 points (1.54%), finishing at 26,225.15.

Crude Oil Prices

• Brent crude soared by 2.33% to $111.81/barrel
• US West Texas Intermediate (WTI) crude was trading 2.79% higher at $108.36/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: The United States and Iran remained far from reaching a deal to end the conflict and reopen the Strait of Hormuz after a drone strike triggered a fire at a nuclear power plant in the United Arab Emirates. Meanwhile, Saudi Arabia said it intercepted three drones. US President Donald Trump also warned that Iran must move “fast” to secure an agreement.
2. Trump–Xi Meeting: The United States and China agreed to establish trade and investment boards and strengthen a constructive relationship focused on strategic stability, fairness, and reciprocity, according to a White House fact sheet released during Trump’s visit to Beijing.
3. US Treasury Yields: US Treasury Bonds yields surged close to their highest levels in a year. The benchmark 10-year Treasury yield climbed to 4.607%, while the two-year Treasury yield rose to 4.085%, reflecting expectations around future Federal Reserve policy.
4. Japanese Bond Yields: Japanese Government Bond yields jumped sharply on Monday, with the benchmark 10-year yield reaching its highest level since October 1996. The 10-year JGB yield rose 7.5 basis points to 2.775%, while the five-year yield advanced 3.5 basis points to 2.020% and the 20-year yield gained 9.5 basis points to 3.735%.

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