Editor’s Take: Nifty, Sensex set for green start, can bulls sustain third day rally?

Nifty, Sensex Today: Indian markets may extend their rally for a third straight session on Wednesday if early signals hold, even as investors remain cautious amid rising geopolitical tensions and await cues from the US Federal Reserve.

Positive global cues signal firm start

GIFT Nifty is indicating that Sensex, Nifty can open in green. If this trend sustains, it would mark the third consecutive day of gains for benchmark indices.

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On Tuesday, markets ended higher for the second straight day. The Sensex rose 567.99 points, or 0.75 per cent, to close at 76,070.84. The Nifty gained 172.35 points, or 0.74 per cent, to settle at 23,581.15, led by buying in auto, metal and realty stocks.

Asian markets also supported sentiment in early trade. Japan’s Nikkei 225 surged over 2 per cent after export data showed a 4.2 per cent year-on-year rise in February. South Korea’s Kospi jumped nearly 4 per cent, while China’s CSI 300 and Hong Kong’s Hang Seng traded marginally higher.

Overnight, US markets ended in the green. The S&P 500 rose 0.25 per cent, Dow Jones gained 0.10 per cent, and Nasdaq climbed 0.47 per cent.

Oil cools, metals slip ahead of Fed decision

Crude oil prices eased in early Asia trade. Brent crude fell as much as 1.5 per cent to $102.14 per barrel after US inventory data showed a rise in stockpiles.

Gold and silver prices also slipped, declining 0.14 per cent and 1.06 per cent respectively.

Investors are now closely tracking the US Federal Reserve’s policy decision. While the central bank is widely expected to keep rates unchanged, commentary from policymakers will be key for cues on the future rate path.

Geopolitical tensions keep markets on edge

Zee Business Managing Editor Anil Singhvi highlighted that geopolitical developments remain a key overhang for markets.

Iran has confirmed the death of its security chief Larijani. In retaliation, Iran reportedly targeted gas facilities in the UAE and oil tankers near the Strait of Hormuz.

The situation escalated further after reports of US airstrikes on Iranian positions near Hormuz early Wednesday. The strikes were aimed at reducing threats to shipping routes, particularly from cruise missiles targeting vessels in the region.

Meanwhile, tensions within the US administration also surfaced. Joseph Kent, head of the National Counterterrorism Center, resigned, alleging that the threat from Iran was overstated and that military action was influenced by external pressure.

US President Donald Trump also criticised NATO, stating that the US does not depend on support from allies and expressing disappointment over the bloc’s response.

War Update (Last 24 Hours)

• Iran confirms death of security chief Ali Larijani
• Iran launches retaliatory strikes on UAE gas facilities and oil tankers near the Strait of Hormuz
• US National Counterterrorism Center head Joseph Kent resigns
• Kent alleges no real threat from Iran, claims Donald Trump acted under Israeli pressure

Trump vs NATO

• Trump lashes out at NATO and European allies over lack of support
• Says NATO response is not surprising
• Claims he never expected military assistance from allies
• Reiterates US does not need external support
• Asserts America is powerful enough to act alone

US Action in Hormuz

• US conducts strikes on Iranian positions near Strait of Hormuz early morning
• Cruise missile threats had raised risks for shipping movement
• US strikes help cool crude oil rally