Overnight Stock Market Movements: Key Developments 

The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are likely to open higher on Friday, supported by gains in the overnight global markets as investors remain hopeful about a US–Iran peace agreement to end the Middle East conflict.

Asian markets traded higher, while the US stock market advanced overnight, with the Dow Jones Industrial Average closing at a record high.

However, on Thursday, the Indian stock market ended lower as investors booked profits in select heavyweight stocks.

Domestic Market Recap

On Thursday, Indian indices red:

• Sensex slumped by 135.03 points (0.18%) to close at 75,183.36
• Nifty 50 moved down by 4.30 points (0.02%) to settle at 23,654.70

Gift Nifty

Gift Nifty was trading near 23,654, around 23 points higher than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

The US stock market closed slightly higher as growing optimism around progress in the US–Iran peace talks supported investor sentiment.

• The Dow Jones Industrial Average soared by 276.31 points (0.55%) to close at 50,285.66
• S&P 500 was up by 12.75 points (0.17%), ending at 7,445.72.
• The Nasdaq Composite was higher by 22.74 points (0.09%), finishing at 26,293.10.

Crude Oil Prices

• Brent crude gained by 2.30% to $104.96/barrel
• US West Texas Intermediate (WTI) crude was trading 1.8% higher at $98.08/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran Peace Talks: The United States and Iran are holding indirect negotiations to develop a framework for a possible agreement, according to reports. Both sides are currently exchanging messages and draft proposals. Meanwhile, US Secretary of State Marco Rubio said the talks had shown “some good signs,” although Iran’s uranium stockpile and control over the Strait of Hormuz continue to remain major sticking points.
2. US Jobless Claims: The number of Americans filing new unemployment benefit claims declined last week. Initial claims for state unemployment benefits fell by 3,000 to a seasonally adjusted 209,000 for the week ended May 16, slightly better than economists’ forecast of 210,000 claims.
3. Japan Inflation: Japan’s annual core inflation slowed to a four-year low in April. The core Consumer Price Index (CPI), which excludes volatile fresh food prices, rose 1.4% year-on-year, easing from 1.8% in March and missing market expectations of a 1.7% increase.
4. US Treasury Yields: US Treasury Bonds yields declined after reports suggested that the United States and Iran had moved closer to finalising a peace deal draft. The benchmark 10-year Treasury yield slipped 0.8 basis points to 4.575%, while the 30-year bond yield fell around 2 basis points to 5.096%. Meanwhile, the two-year Treasury yield rose 2.3 basis points to 4.08%.

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