Global Market Trends to Watch in Today's Trading Session

Indian Equity Markets Expected to Open Weaker on May 26

The Indian equity benchmark indices, the BSE Sensex and Nifty 50, are likely to open on a weaker note today, tracking subdued signals from the GIFT Nifty, which was trading marginally lower around 24,069.50 in early trade.

The Indian benchmark indices started the week on a strong note, extending last week's gains, driven by a sharp decline in crude oil prices amid optimism over a potential US-Iran deal. Positive global cues and appreciation in the Indian rupee further boosted investor sentiment. At close, the Sensex was up 1073.61 points or 1.42 percent at 76,488.96, and the Nifty was up 312.40 points or 1.32 percent at 24,031.70.

Market Performance Comparison

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GIFT Nifty was trading lower at around 24,069.50, indicating a flat-to-negative start for the Indian equity markets. Asian stocks pared gains, and crude oil advanced after reports of US strikes on sites in Iran damped optimism over a potential deal with Tehran. The US markets were closed in observance of the Memorial Day holiday.

The dollar nursed losses on Tuesday on rising investor optimism of a deal being struck to reopen the crucial Strait of Hormuz and end the three-month-long Iran war. However, fresh U.S. attacks on Iranian targets weighed on sentiment. The yield on 10-year Treasuries declined six basis points to 4.49 percent, while the yield on 2-year Treasuries were down more than 6 basis points at 4.05 percent.

Asian currencies traded mixed against the US dollar in the latest session. The Taiwan Dollar emerged as the strongest performer, gaining 0.449 percent, followed by the Philippine Peso and China's Renminbi, rising 0.219 percent and 0.209 percent, respectively, while the South Korean Won posted a mild gain of 0.093 percent. Singapore Dollar remained largely flat with a marginal increase of 0.008 percent.

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On the weaker side, the Thai Baht declined 0.172 percent, followed by the Indonesian Rupiah, which slipped 0.152 percent. The Malaysian Ringgit also weakened by 0.121 percent, while the Japanese Yen edged down 0.044 percent against the dollar.

Oil ticked higher after slumping by more than 7% on Monday, as reports of fresh military strikes in Iran clouded the outlook for an interim deal between Tehran and Washington to reopen the Strait of Hormuz. Brent rose toward $98 a barrel. Gold fell on Tuesday as fresh U.S. attacks in Iran pushed oil prices higher, fuelling concerns around inflation and higher-for-longer interest rates.

After remaining net sellers for the previous four sessions, foreign institutional investors (FIIs) turned net buyers on May 25, purchasing equities worth Rs 821 crore. Meanwhile, domestic institutional investors (DIIs) extended their buying streak for the sixth consecutive session, with equity purchases amounting to Rs 3,856 crore.