Global Markets Outlook: Key Indicators to Monitor in Today's Trading Session

Indian Equity Benchmarks Expected to Start Flat to Negative on April 28

The Indian equity benchmarks, BSE Sensex and Nifty 50, are likely to see a flat to negative start on April 28, tracking the GIFT Nifty, which is trading in the red at around 24,078.50.

The Indian equity benchmarks snapped a three-day losing streak to close around 0.5% higher on April 27, supported by improving global sentiment after reports that Iran had offered a plan to the United States to reopen the Strait of Hormuz. At close, the Sensex was up 639.42 points or 0.83 percent at 77,303.63, and the Nifty was up 194.75 points or 0.81 percent at 24,092.70.

Market Comparison

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Asian stocks held near their highest level since late February as traders awaited developments in the Middle East, alongside a slew of central bank decisions and earnings from major technology companies. The S&P 500 and the Nasdaq eked out modest gains on Monday in muted trading, as investors took a breath at the top of an eventful week, with earnings, economic data, the US Federal Reserve's rate decision, and the ebb and flow of Middle East tensions all crowding the docket.

US Equities Performance

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The US dollar was unchanged in the early trade against the basket of other major currencies. US Treasury yields were steady in Asian trading after rising two to three basis points on Monday, staying on pace for their tightest monthly range since late 2020. Asian currencies traded mostly lower in early Tuesday trade, with the Thai baht leading losses, followed by the Taiwan dollar, Philippine peso, Malaysian ringgit, and Japanese yen. However, Indonesian Rupiah and South Korean Won were up marginally.

Oil prices extended their gains on Tuesday as efforts to end the US-Iran war appear stalled, with the crucial Strait of Hormuz waterway still mainly shut, keeping energy supplies from the key Middle East producing region out of the reach of global buyers. Gold was little changed as traders weighed the latest efforts by the US and Iran to find a negotiated solution to the two-month war that's choked energy supplies and heightened inflation risks.

Foreign Institutional Investors (FIIs) extended their selling streak for the sixth consecutive session on April 27, offloading equities worth Rs 1,151 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers, purchasing equities worth Rs 4,123 crore, thereby providing partial support to the market amid continued foreign outflows.