Global Market Indicators to Watch in Today's Trading Session

Indian Equity Markets Poised for Firm Opening on May 29

The Indian equity benchmark indices, the BSE Sensex and Nifty 50, are expected to start the day on a positive note on May 29, with the GIFT Nifty trading higher at around 23,864.5 in early trade. This indicates a promising start for the Indian equity markets.

Market Activity on May 27

The Indian equity markets witnessed range-bound activity throughout the session on May 27, amidst persistent geopolitical uncertainty surrounding the US-Iran situation despite easing crude oil prices. Despite initial losses, the benchmark indices erased opening losses during the initial hours and oscillated between gains and losses before ending marginally lower. At close, the Sensex was down 141.90 points or 0.19 percent at 75,867.80, and the Nifty was down 6.55 points or 0.03 percent at 23,907.15.

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Global Market Update

Asian equities advanced on May 27, with oil prices dropping after the US and Iran reached a tentative deal to extend their ceasefire. The US equities also posted record closing highs on Thursday, with the S&P 500 and the Nasdaq Composite reaching new heights after news reports said the U.S. and Iran had reached a draft agreement to extend their ceasefire for 60 days. Key statistics from the US equities market are as follows:

Currency and Bond Market Update

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The dollar extended its weakness against major currencies on Friday, with reports that the U.S. and Iran reached an agreement to extend the ceasefire in the Middle East and lift restrictions on shipping through the Strait of Hormuz. The yield on 10-year Treasuries and 2-year Treasuries remained flat in early Friday trade, with yields at 4.44% and 4.01%, respectively.

Commodity Market Update

Oil futures fell slightly on hopes for a potential deal to extend a U.S.-Iran ceasefire, although remarks from Vice President JD Vance that the nations were "close" to reaching a deal but "not there yet" kept a floor under prices. Gold prices inched higher on Friday as investors assessed reports of a U.S.-Iran ceasefire deal amid growing concerns around inflation and U.S. interest rate hikes.

Fund Flow Action

Foreign Institutional Investors (FIIs) remained net sellers for the second consecutive session on May 27, offloading equities worth Rs 1,042.70 crore, while Domestic Institutional Investors (DIIs) continued their strong buying momentum on the seventh consecutive session as they purchased equities of Rs 3,821 crore. On a month-to-date (MTD) basis, FIIs have remained significant net sellers, pulling out Rs 2,27,533.34 crore from Indian equities, while DIIs have provided strong support to the market, investing Rs 2,59,929.03 crore during the same period.

Market Outlook

As the Indian equity markets prepare to start the day on a positive note, investors are advised to remain cautious and monitor global market developments. With the US-Iran ceasefire deal and inflation concerns dominating market sentiment, it is essential to keep a close eye on market movements and adjust investment strategies accordingly.