Concerns over the lack of progress in US-Iran negotiations and warnings that shipping through the Strait of Hormuz may take months to normalise even if a peace deal is reached have pushed crude oil prices higher again. The renewed rise in oil is weighing on global market sentiment, with US futures trading lower. Asian markets, however, are posting strong gains led by Japan.
Gift Nifty closed at 23,490 on Tuesday night and slipped to around 23,450 in early trade on Wednesday, indicating a weak opening for Indian equities.
The Reserve Bank of India is reported to have sold about $12 billion worth of gold in May to support the rupee. The report, published by Bloomberg Economics, cited RBI data showing that the sales took place between May 7 and May 22.
The RBI is believed to have converted part of its gold reserves into dollars for intervention in the foreign-exchange market.
US equities extended gains on Tuesday, driven by technology stocks despite the lack of progress in ceasefire talks involving Iran.
The Dow Jones touched a fresh intraday record, while the S&P 500 closed above 7,600 for the first time.
Shares of Alphabet fell four percent after the Google parent announced plans to raise $80 billion through a stock sale to fund investments in artificial intelligence.
Dow Jones: up 228.91 points (0.45 percent) to 51,307.79
S&P 500: up 9.82 points (0.13 percent) to 7,609.78
Nasdaq Composite: up 7.09 points (0.03 percent) to 27,093.90
Early Wednesday:
Dow futures down 29 points
S&P 500 futures down 5 points
Nasdaq futures down 58 points
Indian ADRs traded mixed in New York.
HDFC Bank ended at $23.50
ICICI Bank closed at $25.38
Infosys finished at $13.14
Wipro ended at $2.22
European markets advanced after a modest easing in oil prices.
Inflation in the euro area rose to 3.2 percent in May. Meanwhile, shares of French biotech company Abivax plunged 44 percent after reports that an experimental treatment for ulcerative colitis was linked to cancer cases among patients.
Asian markets are largely higher.
Japan's Nikkei jumped 2.2 percent, moving above 68,000
Australia's market gained 0.25 percent
South Korea remained closed for a holiday
Hong Kong's Hang Seng fell 0.33 percent
Shanghai opened 0.10 percent lower
Indian equities rebounded sharply on Tuesday after four consecutive sessions of decline. Markets opened deep in the red but recovered strongly in afternoon trade to end with gains.
Technology stocks led the rally, tracking strength in global tech shares.
Nifty IT rose 4.23 percent
TCS gained 6.5 percent
Infosys climbed 5.6 percent
Newgen Software Technologies surged 20 percent
Financials, pharmaceuticals, healthcare and oil-related stocks weakened, while consumer durables, realty, auto and FMCG shares advanced.
Concord Biotech jumped 11.18 percent after receiving US FDA approval for a new drug aimed at preventing organ transplant rejection.
Sensex: 74,649.84 (+0.52 percent)
Nifty 50: 23,483.55 (+0.43 percent)
Bank Nifty: 53,714.65 (+0.13 percent)
Nifty Midcap 100: 60,942.00 (+0.19 percent)
Nifty Smallcap 100: 18,052.30 (+0.40 percent)
Market breadth remained positive. On the BSE, 2,244 stocks advanced and 1,970 declined. On the NSE, 2,023 stocks gained while 1,274 fell.
Foreign portfolio investors remained heavy sellers, offloading shares worth a net ₹8,362.92 crore in the cash market. Domestic institutional investors offset the outflows with net purchases of ₹9,589.32 crore.
Fresh allegations have also emerged involving a senior executive at IndusInd Bank over alleged irregularities in share trading and accounting practices.
Gold prices remain highly volatile amid shifting expectations over developments in Iran.
The metal traded between $4,461 and $4,542 an ounce on Tuesday before closing at $4,489.10. It eased to around $4,469 in early Wednesday trade.
In Kerala, 22-carat gold remained unchanged at ₹1,14,560 per sovereign.
Silver rose to $75.42 an ounce.
Platinum: $1,936
Palladium: $1,355
Rhodium: $7,900
Industrial metals extended gains.
Copper rose 1.07 percent to $13,965.90 a tonne, close to its record high of $14,140. Citigroup has forecast that copper could reach $15,000 this year.
Aluminium touched a record $3,777.04 before closing at $3,750.25. Zinc, nickel, tin and lead also gained.
Rubber prices continued to rise in both domestic and international markets.
RSS-3 in Bangkok: $307.60
RSS-1 in Bangkok: $311.10
RSS-4 in Kerala: ₹26,100
Cocoa prices climbed 4.60 percent to $4,074 a tonne on Tuesday. Concerns that El Niño weather conditions could disrupt production are supporting prices.
The US Dollar Index rose to 99.24.
Euro: $1.1627
Pound sterling: $1.3463
Japanese yen: 159.93 per dollar
Chinese yuan: 6.76 per dollar
The yield on the 10-year US Treasury note rose to 4.459 percent.
The rupee closed 28 paise lower at 95.27 against the dollar on Tuesday.
Market participants believe RBI intervention helped limit the currency's losses. Rising oil prices could keep pressure on the rupee.
Attention is now turning to the RBI Monetary Policy Committee meeting, which begins today. The policy decision will be announced on Friday.
In the offshore NDF market:
Dollar: ₹95.43
Euro: ₹110.78
Yuan: ₹14.09
The absence of progress in US-Iran negotiations has pushed oil prices higher.
Brent crude: $97.10 a barrel
WTI crude: $94.96 a barrel
Higher crude prices remain a major concern for India's inflation outlook, currency stability and equity markets.
Cryptocurrencies extended their decline after Strategy, formerly known as MicroStrategy, sold Bitcoin for the first time since 2022.
The move shocked the market because founder and chairman Michael Saylor had long argued that Bitcoin should never be sold. The sale triggered wider liquidation across exchanges and among investors.
More than $1 billion worth of Bitcoin was sold in a single day.
Bitcoin fell to $66,108, down 11 percent in five days
Ether dropped to $1,851
Solana remained above $74 despite losing more than 10 percent
Sensex: 74,649.84 (+0.52 percent)
Nifty 50: 23,483.55 (+0.43 percent)
Bank Nifty: 53,714.65 (+0.13 percent)
Midcap 100: 60,942.00 (+0.19 percent)
Smallcap 100: 18,052.30 (+0.40 percent)
Dow Jones: 51,307.79 (+0.45 percent)
S&P 500: 7,609.78 (+0.13 percent)
Nasdaq: 27,093.90 (+0.03 percent)
Dollar/rupee: ₹95.27 (+₹0.28)
Gold (ounce): $4,489.10 (+$3.00)
Gold (sovereign): ₹1,14,560
Brent crude: $96.00 (+$1.02)
