Pre-Market Update: GIFT Nifty Signals Weak Start for Nifty 50 on April 22 Despite Ceasefire Extension

Before the trading session begins, there is some positive news for global markets. US stock futures were trading higher on Wednesday morning after US President Donald Trump extended the ongoing ceasefire with Iran, offering temporary relief to investors concerned about escalating tensions in the Middle East. Trump said the US military would hold back its planned attack for now, giving Tehran additional time to present a proposal to end the conflict.

GIFT Nifty on Wednesday 

However, the overall mood remains cautious. The continued US blockade on Iranian vessels has kept uncertainty elevated, and that is likely to weigh on investor sentiment. Reflecting this, Indian markets are expected to open lower on Wednesday. At 7:30 am, GIFT Nifty was down 126 points, or 0.51 per cent, at 24,449.

Asian Markets Trade Mixed

Asian markets were trading on a mixed note on Wednesday morning despite the ceasefire extension, as concerns remained that the West Asia conflict could continue for longer than expected. Japan’s Nikkei 225 was up 0.45 per cent, while Hong Kong’s Hang Seng and China’s Shanghai Composite were trading lower. In overnight trade, Wall Street also ended in the red.

Crude Oil Prices

Crude oil prices were trading with marginal losses at the time of writing. Both West Texas Intermediate and Brent crude were down between 0.70 per cent and 0.91 per cent. WTI crude was trading below USD 90 per barrel, while Brent hovered near USD 98 per barrel.

Institutional Flows: FIIs and DIIs

On April 21, Foreign Institutional Investors were net sellers, offloading equities worth Rs 1,918.99 crore. Domestic Institutional Investors, meanwhile, remained net buyers and purchased shares worth Rs 2,221.27 crore during the session.

Indian Market Action on Tuesday

Indian benchmark indices ended higher on Tuesday, extending their winning run for the third straight session. The Nifty 50 closed above the 24,500 mark for the first time since March 5.

The broader market also remained firm. The Nifty Midcap index ended 0.49 per cent higher, while the Nifty Smallcap index gained 0.88 per cent, indicating continued buying interest beyond frontline stocks.

Wall Street Ends Lower

US markets closed lower on Tuesday. The S&P 500 declined 0.63 per cent to settle at 7,064.01, while the Nasdaq Composite fell 0.59 per cent to 24,259.96. The Dow Jones Industrial Average dropped 293.18 points, or 0.59 per cent, to close at 49,149.38.

Gold and Silver Prices

Gold and silver prices were trading lower on Wednesday. In the international market, gold prices were down more than 1 per cent, while silver prices declined 2.53 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.