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

Indian Equity Markets Expected to Open on a Flat to Positive Note

The Indian equity benchmark indices, the BSE Sensex and Nifty 50, are likely to open on a flat to positive note on June 1, following positive signals from the GIFT Nifty, which was trading higher around 23,712 in early trade.

Indian Benchmark Indices End Lower on May 29

Indian benchmark indices ended lower in a volatile trading session on May 29 amid broad-based selling pressure across sectors, barring IT. At close, the Sensex was down 1,092.06 points or 1.44 percent at 74,775.74, and the Nifty was down 359.40 points or 1.50 percent at 23,547.75.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Global Markets Update

Asian share markets firmed on Monday as the boom in all things AI continued to drive demand, offsetting a lack of progress in Gulf peace talks that challenged optimism on a re-opening of the Strait of Hormuz and lifted oil prices. Meanwhile, Wall Street's main indexes hit record closing highs on Friday and posted weekly and monthly gains as Dell results drove tech shares higher.

The U.S. dollar held steady on Monday after a weekly loss as markets awaited the results of peace talks in the Middle East and signals on the timing of central bank rate hikes. The yield on 10-year Treasuries rose more than 3 basis points to 4.46 percent, and 2-year Treasuries were up nearly 3 basis points at 4.03%.

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

Currency Markets

Most Asian currencies weakened, indicating a stronger US dollar across the region. South Korean Won was the biggest loser, declining 0.611%, followed by Indonesian Rupiah, which fell 0.196%, while the Thai Baht slipped 0.187%. The Singapore Dollar lost 0.086%, while the Malaysian Ringgit edged lower by 0.013%. Taiwan Dollar was almost flat, falling only 0.010%. Chinese Renminbi was the only currency to strengthen, gaining 0.140% against the US dollar.

Commodities Update

Oil prices rose more than 2% in early trading on Monday after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago. Gold was little changed as uncertainty persisted over a ceasefire extension in the Middle East that could reopen the Strait of Hormuz and ease concerns over inflation.

Fund Flow Update

Foreign Institutional Investors (FIIs) remained net sellers for the third consecutive trading session on May 29, offloading equities worth more than Rs 21,000 crore. In contrast, Domestic Institutional Investors (DIIs) extended their buying streak to a ninth straight session, purchasing equities worth Rs 16,764 crore, helping cushion the impact of heavy foreign outflows on the market.