Markets Eye Global Cues Ahead of Trading Session

India's Equity Benchmarks Expected to Open Lower on April 23

The Indian equity market is likely to start the day on a negative note on April 23, as indicated by the GIFT Nifty, which is trading higher at around 24,226. This development comes after the Indian equity benchmarks snapped their three-day winning streak on April 22, declining nearly 1 percent amid selling pressure in IT heavyweights and continued uncertainty surrounding geopolitical developments.

The Sensex closed at 78,516.49, down 756.84 points or 0.95 percent, while the Nifty closed at 24,378.10, down 198.5 points or 0.81 percent. The decline in the Indian equity market is in contrast to the positive cues from the Asian region, where Japan and South Korea stocks hit a record high on Thursday.

Global Market Overview

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The positive sentiment in the global market is attributed to the extension of the Iran ceasefire by US President Donald Trump, which helped to buoy investor sentiment. Additionally, upbeat earnings reports also lifted sentiment, contributing to the gains in US stocks.

Currency and Bond Market

The dollar gauge traded little changed, erasing an early dip fueled by the extension of the US-Iran ceasefire. The yield on 10-year Treasuries and on 2-year Treasuries were up marginally at 4.31% and 3.80%, respectively. Asian currencies were trading mixed in the early trade on Thursday, with the Philippines Peso leading the losers, followed by the Indonesian Rupiah, Malaysian Ringgit, and Thai Baht.

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

Commodities

Crude oil prices were higher despite the stalled peace talks between Iran and the United States. The restrictions on the flow of trade through the Strait of Hormuz continue to impact energy security and keep inflation risks high. Gold was little changed as the US extension of a ceasefire with Iran left global markets grappling with a blockade of the Strait of Hormuz.

Fund Flow Action

Foreign Institutional Investors (FIIs) continued their selling streak for the third consecutive session on April 22, offloading equities worth over Rs 2,000 crore. Meanwhile, Domestic Institutional Investors (DIIs), who had been net buyers for the past two days, reversed their stance and turned net sellers, offloading equities worth more than Rs 1,000 crore.