Global Market Outlook: Key Indicators to Monitor for Today's Trading Activity

Indian Equity Markets: Negative Start Expected

The Indian equity benchmarks, Sensex and Nifty, are likely to see a negative start on March 13, tracking losses in GIFT Nifty, which was trading lower at around 23,584.

Market Performance

On March 12, Indian equity indices extended their losses for the second consecutive session, amid escalating geopolitical tensions that pushed crude oil prices above USD 100 per barrel. Weak global cues, rupee depreciation, and continued foreign institutional investor (FII) selling further weighed on investor sentiment. At close, the Sensex was down 829.29 points or 1.08 percent at 76,034.42, and the Nifty was down 227.70 points or 0.95 percent at 23,639.15.

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Global Market Trends

Asian stocks followed US peers lower in early trading, with oil prices in focus on growing fears that the war in Iran will further crimp energy supplies and boost inflation. US stocks fell on Thursday, as Iranian strikes on two oil tankers sent crude prices surging toward USD 100 per barrel, further exacerbating inflation fears and sending investors fleeing equity markets. The S&P 500 notched its biggest three-day percentage drop in a month.

US Stock Market Performance

The Dow Jones Industrial Average fell 739.42 points, or 1.56%, to 46,677.85, the S&P 500 lost 103.22 points, or 1.52%, to 6,672.58, and the Nasdaq Composite lost 404.15 points, or 1.78%, to 22,311.98.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Currency and Bond Market

The dollar held gains on Friday and was set for its second weekly gain since the beginning of the war in Iran as turmoil in markets left it the last safe-haven standing. The yield on 10-year US Treasuries down marginally at 4.24 percent, while 2-year US Treasuries slipped 2 basis points at 3.71%.

Commodity Market

Oil prices dropped on Friday morning after the US issued a 30-day license for countries to buy Russian oil and petroleum products currently stranded at sea, easing supply concerns. Gold prices jumped 0.7% to $5,106.45 an ounce, while Silver prices also added 1.6 percent.

Fund Flow

The Foreign Institutional Investors (FIIs) sold equities worth over Rs 7,000 crore, while Domestic Institutional Investors (DIIs) bought equities worth Rs 7,500 crore.