Gift Nifty, US-Iran war, bond yields to crude oil prices: 10 things that changed for Indian stock market over weekend

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday, following weakness in global markets, after the escalation in the US-Iran war and the fears of the Strait of Hormuz closure drove crude oil prices sharply higher.

Asian markets traded mixed, while the US stock futures declined as sentiment remained cautious over rising inflation fears and prospects of interest rate hikes.

On Friday, the Indian stock market ended with strong gains, led by a broad-based rally across sectors.

The Sensex jumped 827.57 points, or 1.08%, to close at 77,569.39, while the Nifty 50 settled 244.10 points, or 1.02%, higher at 24,206.90.

“While the broader trend has turned constructive again, we continue to advocate a stock-specific approach with a ‘buy-on-dips’ strategy, favouring relatively stronger sectors such as banking, pharma, realty and pick selectively from the others,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Asian markets traded mixed amid escalating US-Iran war in the Middle East. Japan’s Nikkei 225 fell 0.61%, while the Topix was flat. South Korea’s Kospi declined 1.74%, while the Kosdaq rose 0.73%. Hong Kong’s Hang Seng futures indicated a higher opening.

Gift Nifty was trading around 24,056 level, a discount of nearly 186 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

US stock market ended higher on Friday led by a rally in semiconductor stocks, while investors looked ahead to the quarterly earnings season.

The Dow Jones Industrial Average rose 0.29% to 52,637.01, while the S&P 500 gained 0.42% to end the session at 7,575.39 points. The Nasdaq closed 0.29% higher at 26,281.61. For the week, the S&P 500 rallied 1.2%, the Nasdaq surged 1.7% and the Dow fell 0.5%.

Nvidia stock price jumped 4.03%, AMD shares gained 2.04%, Micron Technology share price fell 1.24%, Meta Platforms shares rallied 5.97%, while Moderna tumbled 10.83% in its worst day in over a year.

The US expanded strikes on Iran, according to a Iran state media report. The latest wave of attacks targeted a wider range of locations across southern and western Iran than previous strikes, claimed Eskan News’ Telegram channel. Meanwhile, the US insists the Strait of Hormuz is open, despite Iran saying it has closed the waterway amid renewed strikes.

South Korean memory chip giant SK Hynix shares made a strong debut on the Nasdaq, with its US-listed shares ending 12.76% higher at $168.01 apiece. The semiconductor company raised over $26 billion by selling American Depositary Receipts priced at $149 each.

US two-year treasury yield climbed to its highest level in more than 16 months as a fresh jump in oil prices raised speculation that the Federal Reserve will tighten policy to keep inflationary pressure in check. The yield rose as much as 3 bps to 4.24%, the highest since February 2025. The 10-year yield added two basis points to 4.58%.

Japanese government bond (JGB) yield extended decline. The 10-year JGB yield fell as much as 2.5 bps to 2.735%. The 20-year JGB yield fell 4 bps to 3.710%. The five-year yield fell as much as 1 bp to 1.970%.

Crude oil prices jumped after the US and Iran exchanged fresh strikes, with the sides offering conflicting statements on whether the Strait of Hormuz remains open to shipping. Brent crude oil price rallied 3.88% to $78.96 a barrel, while the US West Texas Intermediate (WTI) crude spiked 4.01% to $74.27.