Sensex Today | Share Market Live Updates : Weak global peers, Gift Nifty indicate a slow start for Indian markets

Sensex Today Live : On Wednesday, the Indian equity market is projected to start on a lower note, influenced by negative indicators from global markets and escalating crude oil prices. Asian markets are trading in the red, and US stocks experienced a significant drop overnight as investors contemplate the possibility of the US Federal Reserve postponing interest rate cuts.

The surge in US treasury yields and crude oil prices could potentially impact investor sentiment negatively. On Tuesday, the Indian stock market indices ended their three-day winning streak due to profit booking in certain private banks and auto shares, influenced by weak global cues.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “We are witnessing a resurgence of optimism in the broader market, particularly in mid & small cap stocks following a significant correction in recent months. There is a substantial amount of capital on standby, ready to be invested in medium enterprises, driven by easing valuations and the anticipation of robust economic growth in the future.” (Read the full story here.)

Sensex Today Live : Indian stock markets were likely to open on a negative note, tracking falls in global peers as markets digested the risk of a longer wait for rate cuts by the US Federal Reserve.

The Gift Nifty futures, at 22,455, at 7:56 am, were below Tuesday’s Nifty 50 close of 22,453.30, indicating a slow start for Indian benchmarks.

Asian shares tracked Wall Street lower on Wednesday as U.S. yields held near four-month highs, while a powerful earthquake in the region raised concerns about possible disruptions to the vital chip-making industry.

Markets are also pondering the risk of slower rate cuts ahead of U.S. data and an appearance by the world’s most powerful central banker later in the day. Oil extended its ascent, while gold prices hit another a record high.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%. Japan’s Nikkei dropped 1%, after a 20% blockbuster rally in the first quarter.

Taiwan’s shares skidded 0.8% after a powerful earthquake with a magnitude of 7.2 rocked Taipei, the capital, sparking a tsunami warning for the islands of southern Japan and the Philippines.

China’s blue chips eased 0.3% while Hong Kong’s Hang Seng index fell 0.6%, even as a private survey showed that the expansion in the services industry picked up pace in March.

On Wall Street, a recent run of solid U.S. economic data – including an unexpected expansion in the manufacturing sector and the slow easing in the labour market – has stoked doubts about the amount of the Fed easing likely this year and next. The three major Wall Street indexes fell about 0.7%-1%.

Long-term Treasury yields climbed to multi-month highs overnight before paring some of the movements. The benchmark 10-year yield was last at 4.3471% on Wednesday, after hitting a four-month high of 4.405% overnight.

Investors now await euro zone inflation data, which could surprise on the downside after German inflation eased more than expected. In the U.S., a private payrolls report and a services sector survey are the key data risks, along with a speech from Fed Chair Jerome Powell on the economic outlook.

Oil gained for a fourth straight day as escalating geopolitical tensions fuelled worries about tighter supplies ahead of an OPEC meeting where the group is unlikely to change output policy. Brent eased 0.2% to $87.18 a barrel, while U.S. crude lost 0.3% to $83.21 per barrel.

Gold prices extended their record rally on Wednesday. Spot gold hit an all-time high of $2,288.09 per ounce earlier in the session before running into some profit taking and was last flat at $2,277.99.