Indian equity markets continued their downward trend on Wednesday, with the NSE Nifty50 declining 76.60 points, or 0.32%, to close at 24,078.30. This marks the seventh consecutive session of losses for the index, driven by high oil prices and geopolitical tensions.
Gold prices remained near a two-month high on Thursday, bolstered by a decline in US Treasury yields and a weaker dollar. The US dollar hovered near a three-month low as investors reacted to US Treasury measures aimed at stabilizing the bond market.
Oil prices held steady in early Thursday trade as markets assessed the potential risks associated with the US-Iran conflict and the strategic Strait of Hormuz. Meanwhile, Asian stocks saw gains following a bond market rally spurred by the US Treasury's announcement to buy back longer-dated debt.
Shares of companies such as Hyundai Motor India, BSE, HEG, and Hexaware Technologies are expected to be in focus during Thursday's trading session due to recent corporate developments. GIFT Nifty on the NSE IX traded higher by 126 points, or 0.52%, at 24,216, indicating a positive start for Indian markets.
The Indian stock market's recent performance has been influenced by concerns over persistent inflation, which could limit the scope for near-term monetary easing. Investors are also cautious ahead of the release of the US Federal Reserve’s FOMC minutes.
Background
The recent decline in Indian equity markets is part of a broader trend influenced by global economic factors, including high oil prices and geopolitical tensions. The US Treasury's actions to stabilize the bond market have also played a role in shaping investor sentiment.
Looking ahead, market participants will be closely watching geopolitical developments and economic indicators that could impact market sentiment. The trajectory of oil prices and the US-Iran situation will remain key factors to monitor.
