Global Markets: Key Economic Indicators to Watch in Today's Trading Sessions

Indian Equity Benchmarks Expected to Start Weak on April 2

The Indian equity market is likely to experience a weak start on April 2, tracking losses in the GIFT Nifty, which was trading lower around the 22,426 level as of the latest update.

The Indian equity market had snapped its two-day losing streak and ended the first session of the new series on a strong note on April 1, supported by signs of de-escalation in the ongoing tensions between the US and Iran. At close, the Sensex was up 1,186.77 points or 1.65 percent at 73,134.32, and the Nifty was up 348 points or 1.56 percent at 22,679.40.

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Asian stocks extended their losses after President Donald Trump said the US would hit Iran extremely hard over the next two to three weeks, damping hopes for a swift resolution to the conflict. In contrast, Wall Street ended higher on Wednesday, with strong gains in Alphabet and other heavyweights, after U.S. President Donald Trump suggested an end to the Middle East conflict could be close.

The dollar declined against the other major currencies in the early trade on Thursday. Yields on the 10-year U.S. Treasury and 2-year U.S. Treasury rose 3 basis points and 2 basis points to 4.35% and 3.82%, respectively. Among Asian currencies, except the Indonesian Rupiah and Malaysian Ringgit, all other currencies were trading lower.

Oil prices climbed more than $4 on Thursday after President Donald Trump said the United States would continue to attack Iran, including energy and oil targets over the next few weeks, and did not commit to a specific timeline to end the war. In contrast, gold fell after US President Donald Trump said the US would hit Iran “extremely hard” over the next two to three weeks.

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

Foreign Institutional Investors (FIIs) began the new financial year on a weak note, remaining net sellers as they offloaded equities worth ₹8,331 crore on April 1. However, the selling pressure was partly offset by Domestic Institutional Investors (DIIs), who purchased equities worth over ₹7,000 crore.