Global Markets to Watch: Key Economic Indicators for Today's Trading Session

Indian Equity Market Outlook

March 27, 2023

Indian equity benchmarks, the BSE Sensex and Nifty 50, are expected to open on a negative note, tracking losses in GIFT Nifty, which was trading lower at 23,051.50.

Market Performance

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On March 25, the Indian equity indices extended their relief rally for the second consecutive session, with the Nifty closing above the 23,300 mark. The Sensex closed at 75,273.45, up 1,205 points or 1.63 percent, while the Nifty closed at 23,306.45, up 394.05 points or 1.72 percent.

Global Market Trends

Asian equities fell over 1% due to a selloff on Wall Street, which was triggered by concerns over the escalation of the U.S.-Israeli war against Iran. The Nasdaq tumbled more than 2% to confirm a correction, while the S&P 500 and the Dow fell over 1%.

U.S. Market Performance

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

The Dow Jones Industrial Average fell 469.38 points, or 1.01%, to 45,960.11, while the S&P 500 lost 114.74 points, or 1.74%, to 6,477.16. The Nasdaq Composite shed 521.74 points, or 2.38%, to 21,408.08.

Currency and Bond Market

The dollar advanced after President Donald Trump cast doubt on whether the US could reach a ceasefire deal with Iran. The 10-year U.S. Treasury and 2-year U.S. Treasury yields fell by nearly 1 basis point each to 4.4% and 3.96%, respectively. Most Asian currencies, except the Indonesian Rupiah and Japanese Yen, were trading lower, with the Philippine Peso leading the losses.

Commodity Market

Oil prices fell in early trade on Friday and were down over a volatile week after US President Donald Trump said talks with Iran to end the war were going "very well" and announced he would pause attacks on the country's energy plants for 10 days. Gold recovered some losses after US President Donald Trump again pushed back his deadline for securing a deal with Iran to end the war in the Middle East.

Fund Flow

On March 25, Foreign Institutional Investors (FIIs) sold equities worth ₹1,805 crore, while Domestic Institutional Investors (DIIs) bought equities worth ₹5,429 crore.