Talks on a possible US-Iran peace agreement continue to move forward unevenly. Reports also suggested that Iran had begun limited steps to reopen the Strait of Hormuz. However, tensions rose again after firing was reported at a US naval vessel early Tuesday morning. In response, the US carried out airstrikes on several Iranian speed boats and missile launchers in waters off southern Iran. Several Iranian personnel were reportedly killed.
The renewed confrontation lifted crude oil prices and strengthened the dollar. US futures traded higher in early Asian hours, while Asian markets slipped amid concerns over the fresh tensions.
In derivatives trade at Gift City, Gift Nifty had closed at 24,140.50 on Monday night before slipping to around 24,030 on Tuesday morning, indicating a mildly weak opening for Indian equities.
US markets remained closed on Monday on account of the Memorial Day holiday. ADR trading was also inactive.
US futures moved higher in early trade on Tuesday morning.
Dow Jones futures rose 296 points (0.58 percent)
S&P 500 futures gained 45 points (0.60 percent)
Nasdaq futures climbed 240 points (0.80 percent)
European markets ended sharply higher on Monday amid hopes of easing Iran tensions. Bond prices also strengthened.
Shares of German food delivery company Delivery Hero jumped 11 percent following reports that US-based Uber was again exploring a takeover bid.
Asian markets, however, traded lower on Tuesday after the renewed conflict.
Japan’s Nikkei fell 0.60 percent
Australia’s index declined 0.50 percent
South Korea’s market surged more than 3.5 percent to a record high after reopening from a holiday
Hong Kong’s Hang Seng slipped 0.50 percent
Shanghai Composite fell 0.65 percent
Hopes of a de-escalation in Iran tensions and a sharp decline in crude oil prices boosted Indian equities on Monday. Benchmark indices closed near the day’s highs, led by strong gains in banking and financial stocks.
Foreign institutional investors (FIIs) remained modest buyers, purchasing equities worth ₹821.75 crore in the cash market on Monday. Domestic institutional investors bought shares worth ₹3,856.88 crore.
Strong buying was seen in auto, realty, consumer durables, oil, defence, tourism and capital market stocks.
Sensex rose 1,073.61 points (1.42 percent) to close at 76,488.96
Nifty 50 gained 312.40 points (1.32 percent) to end at 24,031.70
Bank Nifty jumped 1,238.30 points (2.29 percent) to 55,293.65
Mid cap 100 index added 577.30 points (0.94 percent) to close at 61,389.70
Small cap 100 index advanced 246.50 points (1.37 percent) to 18,202.70
Broader market sentiment remained positive.
On the BSE:
2,703 stocks advanced
1,607 stocks declined
On the NSE:
2,264 stocks gained
1,038 stocks fell
Gold prices, which had risen on hopes of an end to the Iran conflict, slipped again on Tuesday morning after the latest US strikes in southern Iran.
Gold had climbed to as high as $4,581 per ounce on Monday before settling at $4,571.30, up $60.80. It later fell to around $4,532 in early trade on Tuesday.
In Kerala, 22-carat gold prices rose ₹240 per sovereign on Monday to ₹1,16,880.
Silver, which closed at $77.95 per ounce on Monday, eased to $77.75 on Tuesday morning.
Other precious metals:
Platinum: $1,960
Palladium: $1,375
Rhodium: $8,850
Industrial metal markets remained closed on Monday.
Rubber prices remained largely steady in international markets.
In Bangkok on Monday:
RSS-3 rose slightly to $290.30 per quintal
RSS-1 stood at $293.80
In Kerala, RSS-4 continued at ₹25,200.
Cocoa prices edged higher in international trade, rising 0.58 percent to $3,818.16 per tonne.
The US dollar index strengthened to 99.05 on Tuesday morning.
Meanwhile:
Euro slipped to $1.1633
Pound weakened to $1.3485
Japanese yen declined to 158.94 against the dollar
Chinese yuan remained steady at 6.79 per dollar
The yield on the US 10-year Treasury eased to 4.508 percent.
Lower crude oil prices helped the rupee strengthen further on Monday.
The dollar fell 45 paise to close at ₹95.23.
In the non-deliverable forward (NDF) market on Tuesday morning:
Dollar traded at ₹95.30
Chinese yuan slipped to ₹14.01
Euro eased to ₹110.81
Progress in US-Iran talks had pushed crude oil below $97 per barrel on Monday.
Brent crude fell $7.40 to settle at $96.14 per barrel. However, prices rebounded on Tuesday morning following the US strikes in southern Iran.
Brent crude rose to $98.36
WTI crude traded at $91.99
Cryptocurrencies resumed their fall on Tuesday morning.
Bitcoin slipped below $76,500
Ether fell below $2,090
Solana traded below $84
Sensex: 76,488.96 (+1.42 percent)
Nifty 50: 24,031.70 (+1.32 percent)
Bank Nifty: 55,293.65 (+2.29 percent)
Mid cap 100: 61,966.60 (+0.94 percent)
Small cap 100: 18,202.70 (+1.37 percent)
Dow Jones: 50,579.70 (0.00 percent)
S&P 500: 7,473.47 (0.00 percent)
Nasdaq: 26,343.97 (0.00 percent)
Dollar: ₹95.23 (-₹0.45)
Gold (ounce): $4,571.30 (+$60.80)
Gold (sovereign): ₹1,16,880 (+₹240)
Brent crude: $96.14 (-$7.40)
