Global Market Watch: Key Indicators for Today's Trade

Indian Equity Markets Anticipate Weak Opening

The Indian equity benchmark indices, BSE Sensex and Nifty 50, are likely to experience a weak opening on May 8, as indicated by GIFT Nifty, which is trading lower at around 24,294.50.

The Indian equity markets concluded a volatile session on Thursday (May 7), with the Nifty managing to hold above the 24,330 mark amidst hopes of easing geopolitical tensions following reports of a potential US-Iran peace deal. At close, the Sensex was down 114 points or 0.15 percent at 77,844.52, and the Nifty was down 4.30 points or 0.02 percent at 24,326.65.

Global Market Trends

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

The GIFT Nifty was trading lower at around 24,294.50, signaling a negative start for the Indian equity markets. Asian stocks retreated from a record high and crude oil rose as escalating tensions in the Middle East revived concerns over energy supplies, testing the durability of the recent equity rally.

In the US, the S&P 500 ended lower on Thursday, with Intel and other chip stocks retreating after a recent rally, while uncertainty around US-Iran peace talks weighed on the wider market. The S&P 500 declined 0.38% to end the session at 7,337.11 points, the Nasdaq declined 0.13% to 25,806.20 points, and the Dow Jones Industrial Average declined 0.63% to 49,596.97 points.

Currency and Bond Market Updates

A dollar gauge gained as a US-Iran deal to revive energy flows through the vital Strait of Hormuz remained elusive. The yield on 10-year Treasuries and 2-year Treasuries were down marginally at 4.38% and 3.90%, respectively. In the Asian currency market, the Indonesian Rupiah gained 0.312%, emerging as the strongest performer, while the South Korean Won declined sharply by 0.562%, making it the weakest currency in the basket.

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

Commodity Market

Oil rose in early trade on Friday, after the United States and Iran exchanged fire and put a month-long Middle East ceasefire in doubt. Gold was steady as optimism that a deal to reopen the Strait of Hormuz was imminent faded following reports of attacks on US Navy vessels, reviving inflation concerns.

Fund Flow Activity

On May 7, institutional activity remained mixed in the Indian equity market. Foreign Institutional Investors (FIIs) continued their selling trend, albeit marginally, as they sold equities worth Rs 340 crore. Meanwhile, Domestic Institutional Investors (DIIs) remained supportive of the market and purchased equities worth Rs 441 crore.