The domestic stock market started on a positive note on Tuesday, coinciding with the expiry of Nifty’s weekly options. After opening, Sensex was trading above 75,600, up 350 points. Nifty was also trading above 23,700, up 70 points. A slight increase was seen in Bank Nifty. Nifty Midcap and Smallcap indices also registered gains.
India VIX fell by 4%. IT index gained 2%. After a marginal decline in the consumer durables sector, all other sectoral indices were trading in the green. Many important global and domestic factors are likely to impact today’s trading session. Minor fluctuations related to the expiry of weekly options of Nifty can also be seen in the market today. Fluctuations in crude oil prices, US-Iran tension, FII purchases, RBI stance and quarterly results of companies, all these together can decide the direction of the market. Investors will keep a close eye on these important developments before the market opens.
Petrol and diesel prices increased again; Inflation concerns increased
The prices of petrol and diesel have been increased for the second time in a week. Oil marketing companies have increased the prices of both the fuels by about ₹1 per litre. The continuous increase in fuel prices may increase inflation concerns. The impact of this trend can also be seen on auto, logistics and consumer sectors.
Trump canceled attacks on Iran
US President Donald Trump has once again canceled possible military action against Iran. Trump said that this decision has been taken at the behest of Qatar, Saudi Arabia and UAE. The US will now wait for the results of diplomatic talks with Iran. The global financial market got relief from this news.
India gave a clear message on buying oil from Russia
India has made it clear that it will continue to buy oil from Russia. The Petroleum Ministry said the country will continue to take decisions based on its energy needs. Following India’s stance, the US has extended some exemptions on Russian oil for another 30 days. This news is considered important for the oil market and energy companies.
Pressure on crude oil from upper levels
Crude oil prices faced downward pressure from recent highs after reports of a possible US strike on Iran being averted. Brent crude fell about 2.5 percent, near $109 a barrel. However, oil prices remain at high levels, so the market’s focus will remain on future geopolitical developments.
Mixed trading in US markets
Selling was seen in technology stocks in US markets. Nasdaq closed down about 150 points, while Dow Jones closed up 160 points. This shows that investors are currently adopting a cautious approach towards tech stocks.
**Weakness in Gift Nifty and Dow Futures**
Early signs of the local market look a bit weak. Gift Nifty was seen trading at around 23,650 level, which is down by about 20 points. Meanwhile, Dow Futures also showed weakness, down nearly 50 points.
Dollar Index and Bond Yields weak
The Dollar Index’s five consecutive days of gains slipped below the 99 level and ended. Additionally, the 10-year US bond yield also fell below 4.6%. This can be seen as a good news, which will provide some relief to emerging markets.
rise in gold and silver
In the domestic market, silver closed at around ₹276,650, a gain of around ₹4,750. Meanwhile, gold prices rose by ₹850 to around ₹159,400. In the international market too, gold remained steady at around $4,578, while silver remained steady at around $78.
FIIs continued buying for the third consecutive day
Foreign institutional investors (FIIs) continued their buying in the cash market for the third consecutive day. FIIs bought assets worth about ₹2,813 crore, taking the total net buying figure to ₹4,394 crore. A day after the selloff, domestic funds also bought shares worth ₹2,682 crore.
Market’s focus on Q4 results
In its March quarter results, Indian Oil Corporation’s performance was better than expected, while Astral Ltd’s results looked weak. Today, Bharat Electronics Limited is all set to announce its quarterly earnings. Additionally, the market will closely monitor the results of BPCL, Mankind Pharma, Zydus Lifesciences and PI Industries in the F&O segment.
Adani Enterprises signs agreement with US Department
Adani Enterprises has signed a $275 million settlement with the US Department of Treasury. This case was related to alleged violation of sanctions imposed against Iran. The company resolved the matter without admitting any wrongdoing.
