Global Market Outlook: Key Indicators to Monitor in Today's Trading Session

Indian Equity Markets Poised for Strong Opening on May 25

The Indian equity benchmark indices, BSE Sensex and Nifty 50, are expected to start the day on a positive note, with the GIFT Nifty trading higher at around 23,970. This indicates a strong start for the Indian equity markets.

The previous trading session on May 22 saw a significant surge in the Sensex and Nifty, with the Sensex rising up to 0.75%. However, the gains were pared during the afternoon trade, resulting in a close of 231.99 points or 0.31% higher at 75,415.35 for the Sensex and 64.6 points or 0.27% higher at 23,719.30 for the Nifty. About 2,026 shares advanced, 1,827 shares declined, and 136 shares were unchanged.

Asian Equities and Crude Oil

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Asian stocks climbed on Monday, with crude oil falling to its lowest level in over two weeks. The decline in crude oil prices was triggered by expectations that a deal with Iran to reopen the Strait of Hormuz and restore oil flows may be near. This news also had a positive impact on the US stock market, with the Dow reaching a record closing high.

US Equities and Dollar Index

The US stock market continued its upward trend, with the S&P 500 notching its eighth consecutive weekly gain. The Dow Jones Industrial Average rose 294.04 points, or 0.58%, to 50,579.70, a record closing high. The dollar slipped at the start of Asian trading on Monday, with the dollar index falling.

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Asian Currencies and US Bond Yield

Most of the Asian currencies strengthened against the US dollar, indicating positive movement in Asian foreign exchange markets. The Thai Baht recorded the highest gain with an increase of 0.749%. The yield on 10-year Treasuries slipped more than 1 basis point at 4.55 percent, while 2-year Treasuries were up nearly 4 basis points at 4.12 percent.

Gold and Fund Flow

Gold jumped as signs that the US and Iran are closing in on a deal that would reopen the Strait of Hormuz tempered inflation concerns. In the Indian equity market, FIIs were net sellers and withdrew ₹4,440.47 crore from the market, while DIIs were net buyers and invested ₹6,003.53 crore on May 22.