Global Market Trends to Influence Today's Trading Activity

Indian Equity Markets Poised for Higher Opening Amid Global Cues

The Indian equity benchmarks, the BSE Sensex and Nifty 50, are likely to see a higher opening on April 21, tracking positive cues from GIFT Nifty, which is trading higher at around 24,419.

The Indian equity markets extended gains for the second straight session but ended flat amid volatility, as uncertainty over the Iran-US ceasefire weighed on sentiment. At close, the Sensex was up 26.76 points or 0.03 percent at 78,520.30, and the Nifty was up 11.30 points or 0.05 percent at 24,364.85.

Global Market Update

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Asian stocks edged higher as signs Iran may join talks with the US fostered cautious optimism about progress in the Middle East ahead of a looming ceasefire deadline. In contrast, US stocks closed slightly lower on Monday, with each of the three major indexes coming off a third straight week of gains, as renewed U.S.-Iran tensions put the durability of a two-week ceasefire in question.

Currency and Bond Market Update

The dollar was little changed against the other major currencies in the early trade on Tuesday. The yield on 10-year Treasuries was little changed at 4.25%, while yield on 2-year Treasury was up marginally at 3.72%. Among Asian currencies, except the Japanese Yen and Singapore Dollar, all other currencies were trading higher.

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

Commodities Update

Oil prices fell on Tuesday, reversing gains in the previous session, on expectations peace talks between the U.S. and Iran will take place this week and allow more supply to flow from the key Middle East producing region. Gold steadied, as traders weighed prospects for a negotiated settlement to the war in Iran that's disrupted global energy supplies and heightened inflation risks.

Fund Flow Update

On April 20, the Foreign Institutional Investors (FIIs) sold equities worth over ₹1000 crore, while Domestic Institutional Investors (DIIs) bought equities of nearly ₹3000 crore.