From Gift Nifty, US inflation, IBM shares to Kospi’s rally: 8 key things that changed for Indian stock market overnight

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a muted note Wednesday, following gains in global markets, despite cautiousness over the escalating US-Iran war.

Asian markets rallied, while the US stock market ended higher overnight, lifted by gains in banks and semiconductor stocks.

On Tuesday, the Indian stock market ended lower, weighed down by rising geopolitical tensions and elevated crude oil prices.

The Sensex declined 561.46 points, or 0.72%, to close at 77,054.94, while the Nifty 50 settled 158.95 points, or 0.66%, lower at 24,052.05.

“Indian equities are expected to trade sideways with some volatility expected in the near term amid escalating geopolitical tensions in West Asia, Brent crude prices remaining above $85 per barrel and weak global cues. With the Q1 results season gathering pace, stock-specific action is likely to dominate, while investors will closely monitor key global macro data,” said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Asian markets traded higher on Wednesday, following overnight rally on Wall Street. Japan’s Nikkei 225 rose 0.30% and the Topix gained 0.23%. South Korea’s Kospi jumped 5.51%, while the Kosdaq rallied 5.08%. Hong Kong Hang Seng index futures indicated a higher opening.

Gift Nifty was trading around 24,049 level, a premium of nearly 25 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.

US stock market ended higher on Tuesday as strong earnings from banks and a cooler-than-expected inflation report boosted sentiment.

The Dow Jones Industrial Average rose 10.02 points, or 0.02%, to 52,508.66, while the S&P 500 gained 28.55 points, or 0.38%, to 7,543.89. The Nasdaq Composite closed 233.83 points, or 0.90%, higher at 26,107.01.

Nvidia stock price rallied 4.06%, AMD shares gained 2.57%, Intel shares surged 4.50%, Micron Technology shares jumped 4.92%, SK Hynix ADR skyrocketed 27.29%, Microsoft share price fell 1.55%, Apple stock price eased 0.77%, Tesla stock price rose 0.36%, while IBM shares crashed 25.21%.

US President Donald Trump reimposed a naval blockade of all Iranian ports and threatened to hit power plants and bridges next week unless Tehran resumes negotiations. The US military also carried out a fresh round of strikes against Iran for a fourth consecutive day. Meanwhile, Iran says it has again closed the Strait of Hormuz after hostilities reignited last week.

US consumer inflation slowed more than expected in June. The Consumer Price Index increased by a still-high 3.5% in the 12 months through June after surging 4.2% in May. The CPI fell 0.4% over the month after advancing 0.5% in May. Economists polled by Reuters had forecast the CPI rising 3.8% YoY and dipping 0.1% on a monthly basis.

IBM share price plunged over 25% after the company released disappointing preliminary second-quarter results. The US tech giant said it had “faltered” in keeping pace with a shift in corporate spending from software to data-center infrastructure and would take a big earnings hit in the second quarter.

IBM said it expects Q2 revenue to rise just 1% to $17.2 billion, compared with analysts’ estimate of $17.86 billion, according to data compiled by LSEG.

Gold prices steadied after US inflation came in lower than expected. Spot gold price was little changed at $4,054.36 an ounce, while silver prices rose 0.2% to $58.80 an ounce.