US stock market to Nikkei: Here’s world equity heatmap you should know before opening of the Indian stock market today

The Indian stock market is expected to open on a weak note on Tuesday as the global investor sentiment dampened after the escalation of the US-Iran war and the consequent surge in crude oil prices. The trends on Gift Nifty also signal a gap-down start for the frontline indices, Nifty 50 and Sensex today.

Gift Nifty was trading around 24,050 level, a discount of nearly 192 points from the Nifty futures’ previous close.

Investor concerns have intensified after the US reinstated a naval blockade on Iranian shipping through the Strait of Hormuz and announced a 20% transit fee on cargo passing through the strategic waterway. This has triggered fresh fears of disruptions to global energy supplies and a sharp surge in crude oil prices, stoking inflation fears.

“Sentiment remained fragile as elevated crude oil prices kept inflation concerns alive, while investors also awaited the release of US consumer inflation data and Federal Reserve Chair Kevin Warsh’s Congressional testimony for further policy cues,” said Ponmudi R, CEO - Enrich Money.

The global market cues remained weak. Here’s a look at how global markets have performed:

Asian markets traded mixed amid cautiousness on concerns over the escalating Strait of Hormuz standoff alongside a busy week of global economic data.

Japan’s Nikkei 225 fell 0.84%, while the Topix eased 0.12%. South Korea’s Kospi declined 3.10% and the Kosdaq plunged 4.40%. Hong Kong’s Hang Seng Index dropped 0.54%, while China’s mainland CSI 300 opened flat.

US stock market ended lower on Monday as the latest escalation of the war with Iran in the Middle East sent oil prices jumping.

The Dow Jones Industrial Average fell 138.31 points, or 0.26%, to 52,498.70, while the S&P 500 declined 59.92 points, or 0.79%, to 7,515.47. The Nasdaq Composite closed 408.43 points, or 1.55%, lower at 25,873.18.

“US equities declined sharply President Donald Trump announced the reinstatement of a naval blockade on Iranian shipping through the Strait of Hormuz, effective Tuesday, July 14, and proposed a 20% transit fee on cargo passing through the strategic waterway,” said Ponmudi R, CEO - Enrich Money.

Investor attention has now shifted to the start of the second-quarter earnings season, the release of key US inflation data, and Federal Reserve Chair Kevin Warsh’s first Congressional testimony, he added.

European equities recovered from early losses to close on a mixed note as investors assessed the implications of the renewed US-Iran war tensions.

The pan-European STOXX 600 ended marginally lower, while Germany’s DAX and France’s CAC 40 posted modest gains. London’s FTSE 100 finished little changed, supported by strength in energy stocks as crude oil prices surged.

According to Ponmudi R, the 24,000 level for Nifty 50 remains the immediate support to watch, and a sustained break below could extend losses towards the key support zone of 23,800. On the upside, immediate resistance is placed in the 24,200 – 24,300 range.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.