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

Indian Equity Markets Expected to Open Subdued on May 7

The Indian equity benchmark indices, BSE Sensex and Nifty 50, are likely to open on a subdued note on May 7, following muted global cues. The cautious start is indicated by GIFT Nifty, which was trading nearly flat around the 24,481 mark in early trade, signaling a range-bound opening for the domestic markets.

The Indian equity markets had ended on a strong note on May 6, with the Nifty closing above the 24,300 mark. The optimism grew over a potential US-Iran agreement to ease geopolitical tensions. At close, the Sensex was up 940.73 points or 1.22 percent at 77,958.52, and the Nifty was up 298.15 points or 1.24 percent at 24,330.95.

Global Market Update

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Asian equities climbed to a record, powered by a rally in Japanese stocks on their return from a break. The optimism grew that the US and Iran were nearing a deal to end the conflict that had rattled markets and clouded the economic outlook.

The S&P 500 and the Nasdaq surged to record-high closes on Wednesday, buoyed by signs of a resolution in the Middle East conflict, while strong earnings from Advanced Micro Devices sparked a rally in chipmakers and other AI-related stocks.

The dollar index traded with little gains against most major currencies in the early trade on Thursday. The yield on 10-year Treasuries and 2-year Treasuries were little changed at 4.34% and 3.86%, respectively.

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

Currency and Commodities Update

Asian currencies traded on a mixed note against the US dollar, with most regional currencies witnessing gains from the previous close. The Philippines Peso emerged as the top performer, appreciating 0.761 percent, followed by the Taiwan Dollar, which gained 0.277 percent.

Oil prices rose more than $1 in early trade on Thursday, rebounding from the previous day's sharp losses, as investors weighed the prospects of a Middle East peace deal succeeding. Gold and silver surged the most in about a month as hopes of a US-Iran deal drove oil prices lower and eased inflation expectations.

Fund Flow Update

Foreign Institutional Investors (FIIs) extended their selling streak on May 6, offloading equities worth Rs 5,834 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers, purchasing equities worth Rs 6,836 crore.