Top News

Expert Cautions on Weekend Selling and FPI Trends

Despite the buoyant start in trading hours, market experts believe that institutional investment trends and upcoming derivative contract expirations prompted a measured approach for the domestic trading session. Banking and Market expert, Ajay Bagga, said, "Indian markets will open slightly in the green, but we expect continued selling into the weekend. FPIs remained net sellers for most of May as well, and we don't see that trend reversing anytime soon. Caution is advised when going into the month-end expiry next week."

Add Asianet Newsable as a Preferred Source

Asian Markets Rally on Widespread Buying

The regional markets also highlighted widespread buying interest across Asia. Japan's Nikkei 225 led the gains with a surge of 2.61 per cent, or 1,608.86 points, to reach 63,293.00. Hong Kong's Hang Seng index climbed 1.34 per cent to 25,726.00, and the Taiwan Weighted index rose 1.28 per cent to touch 41,888.71. Singapore's Straits Times and South Korea's KOSPI also maintained positive territory, posting gains of 0.36 per cent and 0.23 per cent, respectively.

Global Markets in a 'Treacherous Zone'

Bagga stated that global markets are in a treacherous zone. "AI Momentum is taking key markets higher while the Iran War is now nearing three months, with inflation and energy supply disruptions spilling into second-order effects. Japanese core inflation coming below expectations is providing some relief this Asian morning as the BOJ rate hike may get postponed as a result," he said.

Commodity Market Update

At the time of filing this report, the commodity market showed Brent Crude trading at USD 104.16 per barrel, up by 1.54 per cent, while Crude Oil stood at USD 97.40, up by 1.09 per cent. On the other hand, Gold prices ticked lower by 0.31 per cent to stand at USD 4,528.87 dollars.

Geopolitical Respite Boosts Market Sentiment

The geopolitical landscape shifted slightly after political statements suggested a pause in immediate military escalations, allowing equity markets to sustain their recovery. "Trump announced that he is willing to postpone any action on Iran, giving mediation a chance. The Supreme Leader of Iran meantime ruled out shipping out Iran's enriched Uranium out of the country, which has been a key US demand. Markets are continuing their hope rally, looking beyond the rhetoric to the reality that kinetic action has been avoided since the fragile ceasefire announced on April 7th," Bagga noted.

Long-Term Energy Infrastructure Outlook

Long-term energy infrastructure updates also factored into the market outlook, particularly concerning regional supply routes and their future impact on domestic refining operations. Ajay Bagga said, "Abu Dhabi announced that it has completed around 50% work on a new pipeline, which will make its oil exports even less dependent on the Strait of Hormuz by 2027. This will be a major positive for India in the long term, given the geostrategic relations with the UAE and the proximity of Indian refineries to the Gulf."

At the time of filing this report, Rupee stood at 96.23, up by +0.06 per cent against the dollar.