Overnight Stock Market Movements: Key Developments 

Overnight global market signals and escalating concerns over a potential US–Iran military conflict are likely to push the Indian benchmark indices, Sensex and Nifty 50, lower at Friday’s open.

Asian markets traded on a mixed note, while Wall Street closed in negative territory, with all three major US indices ending the session lower.

Moreover, on Thursday, investors dragged the Indian stock market sharply lower, ending its three-day winning streak amid cautious global sentiment.

Domestic Market Recap

On Thursday, Indian indices closed in the red:

• Sensex crashed by 1,236.11 points (1.48%) to close at 82,498.14
• Nifty 50 moved down by 365.00 points (1.41%) to settle at 25,454.35

Gift Nifty

Gift Nifty was trading near 25,418, around 28 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

Investors pushed the US stock market lower on Thursday, as losses in private equity firms and weakness in Walmart and Apple shares weighed on major indices.

• The Dow Jones Industrial Average slumped by 267.50 points (0.54%) to close at 49,395.16.
• S&P 500 down by 19.42 points (0.28%), ending at 6,861.89.
• The Nasdaq Composite was lower by 70.91 points (0.31%), finishing at 22,682.73.

Crude Oil Prices

• Brent crude gained by 0.17% to $71.78/barrel
• US West Texas Intermediate (WTI) crude was trading 0.11%higher at $66.50/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran Tensions: Donald Trump warned Iran that it must reach an agreement over its nuclear program within 10 to 15 days or face “really bad things.” In response, Tehran threatened to retaliate against US military bases in the region if Washington launches any attack, escalating geopolitical tensions.
2. US Trade Deficit: The United States recorded a fresh record in its goods trade deficit in 2025. The goods deficit widened slightly to $1.24 trillion for the full year compared with 2024. However, when services were included, the overall US trade deficit narrowed marginally to $901.5 billion in 2025 from $903.5 billion in 2024. In December, the total trade deficit surged 32.6% to $70.3 billion, exceeding expectations, as exports declined while imports increased.
3. US Jobless Claims: The number of Americans filing new unemployment benefit claims fell more than expected last week. Initial claims dropped by 23,000 to a seasonally adjusted 206,000 for the week ended February 14. The decline followed a spike to 232,000 at the end of January.
4. Japan Inflation: Japan’s annual core consumer inflation slowed to 2.0% in January, marking its weakest pace in two years. The reading matched market expectations and eased from December’s 2.4% increase. Meanwhile, Japan’s flash composite Purchasing Managers’ Index (PMI) rose to 53.8 in February from 53.1 in January, indicating the fastest pace of expansion since May 2023.

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