Sensex, Nifty erode gains on first day of May series

Indian benchmark indices Sensex and Nifty opened in green territory in first session of May series. BSE Sensex opened 168.87, or 0.87 per cent higher at 74,509.30 while NSE Nifty inched 50.10, or 0.22 per cent higher at 22,620.40.

However, the indices were quick enough to erode all gains.

International crude oil prices rose on track after a top US official expressed optimism over economic growth and as supply concerns lingered due to conflicts in the Middle East. Brent crude futures gained 31 cents, or 0.4 per cent, to $89.32 a barrel and US West Texas Intermediate crude futures rose by 23 cents, or 0.3 per cent, to $83.80 a barrel. For the week, Brent has gained 2.3 per cent so far, while WTI is up 0.8 per cent.

Indian government bond yields rose as US yields spiked to new highs amid a further pushback in rate cut expectations. The benchmark 10-year Indian yield was at 7.2203 per cent as of 10:00 a.m.

Asian markets slipped led by Japan’s Nikkei, which witnessed 34-year low on today’s session. Nikkei is trading 283.64 points, or 0.75 per cent higher at 37,918.03.

Meanwhile, the US expected weaker than expected GDP data on Thursday. After the release, Treasury Secretary Janet Yellen said US GDP growth for the first quarter could be revised higher. As per Yellen, US economic growth was likely stronger than suggested by weaker-than-expected quarterly data.