The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open sharply lower on Thursday, tracking steep losses in global markets amid concerns over surging crude oil prices.

Asian markets traded lower, while Wall Street slumped overnight after the US Federal Reserve’s policy decision, with the S&P 500 posting its lowest close in nearly four months.

On Wednesday, the Indian stock market extended its rally for a third consecutive session despite caution over the ongoing US-Iran war in the Middle East.

The Sensex jumped 633.29 points, or 0.83%, to close at 76,704.13, while the Nifty 50 settled 196.65 points, or 0.83%, higher at 23,777.80.

“Markets will track developments in West Asia, movements in crude oil prices and trends in foreign fund flows for directional cues. Updates on the India–US trade agreement and the Federal Reserve’s interest rate decision will also be key triggers,” said Siddhartha Khemka, head of research (wealth management), Motilal Oswal Financial Services Ltd.

Here are the key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Thursday, following overnight losses on Wall Street after the Federal Reserve’s policy decision and the escalating US-Iran conflict, which pushed oil prices higher.

Japan’s Nikkei 225 declined 2.47%, while the Topix fell 1.82%. South Korea’s Kospi dropped 2.56% and the Kosdaq slipped 1.73%. Hong Kong’s Hang Seng futures indicated a lower opening.

Gift Nifty Today

Gift Nifty was trading around 23,251, down nearly 525 points from its previous close, indicating a gap-down start for Indian benchmark indices.

Wall Street

US markets ended sharply lower on Wednesday after the Federal Reserve kept interest rates unchanged and projected only one rate cut this year.

The Dow Jones Industrial Average declined 1.63% to 46,225.15, while the S&P 500 fell 1.36% to 6,624.70, its lowest close in nearly four months. The Nasdaq dropped 1.46% to 22,152.42.

Among stocks, Nvidia fell 0.84%, Apple declined 1.69%, Microsoft dropped 1.91%, Amazon lost 2.48% and Tesla slipped 1.63%. AMD rose 1.6%, while Micron Technology tumbled 4.3%.

US Federal Reserve Policy

The US Federal Reserve kept benchmark interest rates unchanged at 3.5%–3.75% for the second consecutive meeting. The Jerome Powell-led FOMC projected higher inflation, steady unemployment and a single rate cut this year.

US-Iran War

The US and Israeli war on Iran escalated as Iran reportedly attacked gas facilities in Qatar after Israel struck Iran’s South Pars offshore gas field in the Persian Gulf. Israel also reportedly killed Iran’s intelligence minister and continued targeting the country’s top leadership.

US Producer Price Index

US producer prices rose by the most in seven months in February. The PPI for final demand increased 0.7%, following a 0.5% rise in January. Economists polled by Reuters had expected a 0.3% gain. On a year-on-year basis, PPI rose 3.4%, the fastest pace in a year.

Crude Oil Prices

Oil prices surged amid attacks on energy infrastructure in the Middle East. Brent crude rose 3.71% to $111.36 a barrel, while US WTI crude gained 2.97% to $99.18.

US Treasury Yields

US Treasury yields edged higher after the Fed maintained its projection of one rate cut this year. The two-year yield rose to around 3.69%, while the 10-year yield was at 4.21%.

Dollar

The US dollar index slipped 0.1% to 100.11, hovering near a four-month high. The yen strengthened 0.1% to 159.78, while the euro rose 0.1% to $1.1469 and the British pound edged up 0.1% to $1.3273.

Gold Rate Today

Gold prices steadied after tumbling nearly 4% in the previous session. Spot gold rose 0.4% to $4,835.55 an ounce, while silver gained 0.7% to $75.87.

(With inputs from Reuters)