Sensex, Nifty Set For Positive Open

(RTTNews) - Indian shares look set to open on a positive note Wednesday after oil prices plummeted for a second straight day in the wake of comments from U.S. President Donald Trump that China can continue buying Iranian oil and that he hopes the country will also be purchasing "plenty" from the U.S.

Brent crude futures slumped 13 percent over the past two days, returning to levels last seen before the Iran-Israel conflict, amid signs that Strait of Hormuz would stay open for now.

Israel and Iran have accused each other of violating the ceasefire, but traders bet that a delicate ceasefire between the countries will hold.

Benchmark indexes Sensex and Nifty ended up by 0.2 percent and 0.3 percent, respectively on Tuesday, giving up some early gains.

The rupee closed with a steep gain of 75 paise at 86.03 against the dollar, marking its biggest daily gain in a month as easing geopolitical tensions lowered risk premiums.

Asian markets were flat to slightly higher this morning after rising sharply in the previous session.

Treasury yields and the dollar index were steady amid the easing in Middle East tensions and comments from Federal Reserve Chair Jerome Powell that "many paths are possible" for monetary policy.

Gold ticked higher after falling 2 percent to hit an over two-week low on Tuesday. Oil edged up slightly after posting the biggest two-day decline since 2022.

U.S. stocks rallied overnight as a fragile truce between Israel and Iran helped offset weak consumer confidence data and comments from Fed Chair Jerome Powell that rate cuts can wait until the economic effects of tariff increases are better known.

At the same time, Powell hinted that lower inflation and weaker labor hiring could lead to an earlier rate cut, prompting traders to price in two Fed cuts by the end of 2025, with a first move in September far more likely than next month.

The tech-heavy Nasdaq Composite surged 1.4 percent, the Dow gained 1.2 percent and the S&P 500 rose 1.1 percent to reach their best closing levels in four months.

European stocks advanced on Tuesday after the office of Israeli Prime Minister Benjamin Netanyahu and Iranian state media outlet Press TV confirmed a ceasefire had begun.

The pen-European STOXX 600 jumped 1.1 percent to hit a one-week high and notch its biggest single-day jump in over a month.

The German DAX climbed 1.6 percent, France's CAC 40 added 1 percent and the U.K.'s FTSE 100 finished marginally higher.