On Tuesday—which is Nifty’s weekly expiry day—the market is set to open amid a mixed environment of global cues, US-Iran tension, fluctuations in crude oil prices and quarterly results. While on one hand GIFT Nifty is showing signs of growth, on the other hand geopolitical tensions and volatility in commodities may increase investors’ concerns.
America-Iran tension increased again
Just before the end of the two-week ceasefire, tensions between the US and Iran have flared up once again. Donald Trump has given a stern warning to Iran, saying that if no agreement is reached, strict action will be taken. Meanwhile, taking a hard line, Iran has said it is impossible to negotiate amid the blockade and ceasefire violations; He has also said that he has completed preparations for a new war.
volatility in crude oil
Ahead of the ceasefire deadline, crude oil is trading flat and hovering around the $95 level. It is expected that the trend of oil prices will remain a big trigger for the market going forward.
Optimism about India-US trade agreement
There are positive signals regarding a possible trade agreement between India and America. US Ambassador Sergio Gore has said that this agreement can be finalized by this week, which will benefit both the countries.
Mixed trends in global markets
GIFT Nifty is trading near 24,400 level with a gain of almost 100 points. Dow futures are showing slight gains, while Asian markets—especially Japan and Korea—are trading with gains of 1-2%. However, the ongoing rally in the American markets has now come to a halt. The Nasdaq fell after 13 consecutive days of gains, while the Dow closed with a slight loss.
decline in gold and silver
Pressure was clearly seen in the commodity market. Silver fell by nearly ₹4,600 to close at ₹2.52 lakh, while gold fell by ₹700 to close below ₹1.54 lakh.
FIIs vs DIIs: Changes in investment flows
After three consecutive days of buying, foreign institutional investors (FIIs) have now resorted to mild selling. Overall, selling of ₹1,583 crore was recorded. In contrast, domestic institutional investors (DIIs) resumed buying after a gap of three days, infusing ₹2,967 crore into the market and providing some support to the market.
Focus on results and shares
Today is a very important day in terms of corporate updates. PNB Housing has presented excellent results. Today, market players will keep a close eye on the results of HCL Tech and Nestle on Nifty, while shares of 360 One Wam, Persistent Systems and Tata Elxsi will be in focus in the F&O segment.
Vedanta Demerger Update
Vedanta’s Demerger scheme is going to be implemented from May 1. Under the plan, investors will get one share each of the four new companies for every share they hold in the parent company.
Relief from RBI
RBI has relaxed the rules of forex trading for banks. Banks are now allowed to conduct NDF trading and rebook canceled contracts; However, the $100 million cap on net open positions will remain in place.
impact on development
The adverse effects of the West Asia crisis are now visible in the domestic economy as well. In March, core sector growth fell to -0.4% from 2.8%, its weakest performance in the last 19 months.