Global Markets Preview: Key Cues to Watch This Trading Session

Indian Equity Markets Expected to See Weak Start

The Indian equity benchmarks, the BSE Sensex and Nifty 50, are likely to experience a weak start on April 13, tracking losses in the GIFT Nifty, which was trading around the 23,763 level.

The previous session saw a rebound in the Indian equity indices, with a strong closing on April 10, supported by positive global cues amid easing geopolitical concerns. At close, the Sensex was up 918.60 points or 1.20 percent at 77,550.25, and the Nifty was up 275.50 points or 1.16 percent at 24,050.60.

Market Performance Comparison

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Asian indices were trading lower in the early Monday trade, as investors weigh a U.S. naval blockade on Iran's ports after talks between Washington and Tehran failed to produce an agreement to end the conflict in the Middle East. The U.S. stocks closed mixed on Friday, with investors pressing pause as they headed into the weekend and kept an eye on ongoing Middle East peace negotiations.

U.S. Stock Market Performance

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The dollar strengthened to the highest level in a week in a broad rally against most of its peers in early Asian trade on Monday as peace talks between the U.S. and Iran broke down and the U.S. Navy prepared a blockade of Iranian ports. The yield on the U.S. 10-year Treasury and 2-year U.S. Treasury jumped more than 3 basis points each at 4.34% and 3.83%, respectively.

Asian currencies were trading mostly lower in the early trade on Monday with the Thai Baht leading the losers followed by the Philippine Peso, South Korean Won, and Singapore Dollar. Oil prices jumped above $100 a barrel on Monday as the U.S. Navy prepared a blockade of the Strait of Hormuz that could restrict Iranian oil shipments after the U.S. and Iran failed to reach a deal to end the war.

Gold tumbled on mounting inflation concerns, after U.S.-Iran peace talks ended without resolution and American plans to blockade the Strait of Hormuz deepened a global energy-supply shock. After remaining net sellers for the past 27 trading sessions, foreign investors (FIIs/FPIs) turned net buyers for the first time since February 25, purchasing equities worth ₹672 crore on April 10. Meanwhile, Domestic Institutional Investors (DIIs) continued their buying streak, investing ₹410 crore.