Indian markets extended losses for the fourth consecutive session as the lack of progress in US-Iran negotiations continued to create nervousness across global markets. Escalating tensions in West Asia have heightened fears of a prolonged geopolitical conflict, keeping investors risk-averse and triggering sustained selling across financial markets. Overall, analysts say market sentiment is likely to remain fragile until there is greater clarity on geopolitical developments and stability in energy prices.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 49 points, or 0.21 per cent, at 23,472, signaling that Dalal Street was headed for a positive start on Wednesday.
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Tech View: The markets remained under pressure for the second straight session, with the Nifty slipping below its immediate support at the 50-DMA placed near 23,950 levels. On the volatility front, India VIX jumped nearly 10% to close around 18.50 levels, and any sustained move above the 20 mark could further increase nervousness among market participants.
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India VIX: India VIX, which is a measure of the fear in the markets, rose 4% to settle at 19.28 levels.
S&P 500, Nasdaq end lower
The S&P 500 and the Nasdaq closed lower on Tuesday, easing from record highs as hotter-than-expected inflation data and an increasingly tenuous U.S.-Iran ceasefire prompted investors to take money off the table near the end of a robust first-quarter earnings season.
Asian shares drop
Asian stocks dropped following losses on Wall Street as US inflation quickened, showing the impact of higher oil prices since the war in Iran started.
- S&P 500 futures fell 0.2% as of 9:04 a.m. Tokyo time
- Hang Seng futures were little changed
- Japan’s Topix rose 0.3%
- Australia’s S&P/ASX 200 fell 0.6%
- Euro Stoxx 50 futures fell 1.5%
Oil slips
Oil prices fell on Wednesday after rising in three consecutive sessions, as investors awaited developments around the fragile ceasefire in the Iran war and U.S. President Donald Trump headed to China for a high stakes summit with President Xi Jinping.
Dollar rises
The dollar held near a one-week high on Wednesday as risk sentiment soured after a hot U.S. inflation reading sent Treasury yields higher, and oil inched up on renewed Middle East uncertainty.
Gold steady
Gold prices held steady in early Asian trade on Wednesday as investors stayed on the sidelines ahead of a key U.S.-China summit in Beijing while keeping an eye on developments surrounding the Middle East conflict.
Stocks in F&O ban today
SAIL
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
FII/DII action
Foreign portfolio investors net bought shares worth Rs 1,959 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 7,990 crore.
Rupee
The Indian rupee hit an all-time low on Tuesday at 95.73 as fading hopes of a peace deal between the US and Iran sparked a run-up in oil prices, which, along with persistent portfolio outflows and weakening sentiment, pressured the currency.
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