Global Markets: Key Indicators to Monitor in Today's Trading Session
Indian Equity Markets Expected to See Flat to Negative Start on June 4
The BSE Sensex and Nifty 50, India's key equity benchmark indices, are likely to experience a flat to negative start on June 4, following subdued signals from the GIFT Nifty. As of early trade, the GIFT Nifty was trading nearly flat at around 23,328.
This comes after a volatile session on June 3, during which the Indian equities ended lower, erasing the previous session's gains. The Nifty 50 slipped below the 23,200 mark intraday due to a spike in crude oil prices and uncertainty surrounding a potential U.S.-Iran peace deal. At close, the Sensex was down 303.67 points or 0.41 percent at 74,346.17, and the Nifty was down 77.95 points or 0.33 percent at 23,405.60.
Global Equities Experience Mixed Performance
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Asian equities fell alongside US equity-index futures as the AI-fueled rally that powered global equities to record highs lost momentum after a weak forecast from Broadcom Inc. The Dow Jones Industrial Average fell 620.72 points, or 1.21%, to 50,687.07, the S&P 500 lost 56.06 points, or 0.74%, to 7,553.72, and the Nasdaq Composite lost 239.92 points, or 0.89%, to 26,853.98.
| Index | Change | Percentage Change |
|---|---|---|
| Dow Jones Industrial Average | -620.72 | -1.21% |
| S&P 500 | -56.06 | -0.74% |
| Nasdaq Composite | -239.92 | -0.89% |
Currency and Bond Market Performance
The U.S. dollar index, which measures the greenback's strength against a basket of six currencies, held steady at 99.46 after a three-day rally that took the currency to its strongest level since April 7. The yield on 10-year Treasuries and 2-year Treasuries declined one basis point each to 4.47% and 4.06%, respectively.
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| Currency | Change |
|---|---|
| U.S. Dollar Index | 99.46 |
| 10-Year Treasury Yield | 4.47% |
| 2-Year Treasury Yield | 4.06% |
Crude Oil and Gold Prices
Oil prices eased on Thursday due to a ceasefire agreement between Israel and Lebanon, boosting hopes for a broader deal to end the U.S.-Israeli war with Iran. Meanwhile, gold prices gained on Thursday, supported by lower crude oil prices and a weaker dollar.
Indian Fund Flow
Foreign Institutional Investors (FIIs) remained net sellers for the session, offloading equities worth Rs 5,616 crore on June 3. In contrast, Domestic Institutional Investors (DIIs) provided support to the market by purchasing equities worth Rs 5,740 crore, largely offsetting the foreign outflows.
Investor Takeaway
Indian equity markets may see a flat to negative start on June 4, tracking subdued signals from the GIFT Nifty.
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