On March 9, Indian equity benchmarks, including the Sensex and Nifty, are anticipated to start lower. This expectation follows losses in the GIFT Nifty, which was observed trading at approximately 23,844 early in the day. The Indian indices had already faced challenges, with the Nifty closing at 24,450 on March 6, down 315.45 points or 1.27 percent.
Global Market Overview
Financial markets worldwide showed a downward trend. Here’s a snapshot of how various sectors performed:
- GIFT Nifty: Trading lower, indicating a weak market start.
- Asian Markets: Experienced declines, with the Kospi dropping nearly 8%. This sell-off was driven by oil prices rising above $100 per barrel, a first since 2022.
- Japanese Indices: The Nikkei 225 fell by 6.4%, breaking below the 52,000 level for the first time since February 6. The Topix index also saw a decline of 5%.
- U.S. Equities: Wall Street finished lower on Friday amid labor market concerns and a notable spike in oil prices. The Dow Jones Industrial Average decreased by 0.95% to 47,501.55 points, marking a significant weekly drop.
Key U.S. Market Figures
The closing figures for Wall Street’s main indexes are as follows:
- Dow Jones: 47,501.55 (-0.95%)
- S&P 500: 6,740 (-1.33%)
- Nasdaq Composite: 22,387.68 (-1.59%)
- Russell 2000: Recorded its sharpest weekly fall since August.
Market Influencers
Dollar and Bond Yields
The U.S. Dollar Index reached a three-month high against the euro, influenced by rising oil prices and falling stock values. Additionally, the yield for 10-year U.S. Treasuries climbed to 4.18%, while the 2-year yield rose to 3.71%.
Asian Currencies
Most Asian currencies depreciated, with the Thai Baht seeing the steepest decline in March, followed by the South Korean Won and the Japanese Yen.
Commodities Update
Crude Oil Prices
Crude oil prices surged above $100 per barrel, a result of escalating conflicts in the Middle East affecting oil supply stability.
Precious Metals
On the commodities front, gold prices fell by 2% and silver by 4.5% as the market reacted to broader economic pressures.
Investor Activity
On March 6, Foreign Institutional Investors (FIIs) sold equities worth over ₹6,000 crore, maintaining a selling streak for the sixth consecutive session. In contrast, Domestic Institutional Investors (DIIs) purchased shares totaling more than ₹6,971 crore.
As the market opens, stakeholders are advised to stay informed of these fluctuations. Wishing everyone a successful trading day at El-Balad.
