Ahead of markets opening on Wednesday, signals look somewhat mixed. On one hand, there are hopes of relief after Donald Trump extended the ceasefire; On the other hand, the uncertainty surrounding possible talks is weighing heavily on the market mood. The rise in crude oil prices, weakness in global markets, and activities of foreign institutional investors (FIIs) may decide the direction of the market today.
Cease-fire extended, yet uncertainty remains
Amid rising tensions in the Strait of Hormuz, Trump has extended the ceasefire indefinitely—without setting a specific deadline. He said the administration will now wait for a unified resolution from the Iranian government to end the conflict. However, there is still a lack of clarity regarding the prospects of negotiations, leading to uncertainty in the market. Global signals remain somewhat unclear; GIFT Nifty is trading around 24,400 levels—down nearly 170 points—indicating a weak start to the trading session. In contrast, US futures are looking strong; Dow futures are up 225 points and Nasdaq futures are up 175 points.
Tremendous rise in crude oil; Prices around $98
The effect of geopolitical tension can be clearly seen in the crude oil market. Brent crude rose by about 3% and reached near the level of $98 per barrel. This surge in oil prices is generally considered a negative factor for both inflation and overall market mood.
weakness in US markets; Indices slipped from their high levels
The effect of uncertainty was also seen in the American markets. The Dow fell nearly 700 points from its intra-day high and ultimately closed 300 points lower. At the same time, Nasdaq touched a new intra-day high, but later slipped and closed with a fall of about 150 points. American markets declined for the second consecutive day.
Heavy fall in gold and silver
Pressure was also seen in the commodity market. Gold prices declined by nearly ₹2,300 and closed below ₹151,700 levels; At the same time, a huge fall of ₹ 7,800 was recorded in silver and it closed at ₹ 244,700. Also on COMEX, gold prices fell by about 1.5%, and silver prices saw a decline of up to 3%.
FII selling, yet net buying continues
Foreign investors sold ₹1,919 crore in the cash market; However, on a net-net basis, overall net purchases stood at ₹2,202 crore. Meanwhile, domestic institutional investors (DIIs) continued their buying for the second consecutive day, infusing ₹2,221 crore in the market.
Earnings impact: Pressure on IT sector, some stocks shine
On the earnings front, HCL Tech’s results were below expectations on every parameter, which may put pressure on the IT sector. In contrast, the 360 One WAM performed tremendously. Tata Elxsi and Persistent Systems’ earnings results were largely in line with market expectations.
