GIFT Nifty signals flat-to-positive start for Sensex, Nifty; Asian markets rally, softer oil lend support

As per the latest business developments, Indian key market indices The two key benchmark indices are likely to open on a flat to mildly positive note on Friday, with GIFT Nifty indicating marginal upside, as a surge across Asian and US equities and a further slide in oil price marks provide backing. Easing US Treasury yields are another positive cue. That stated, oil still remaining above $100 a barrel and persistent Middle East tensions could keep market participants wary at elevated marks.

GIFT Nifty was trading at 23,345 around 7:45 am, up 12 points, or 0.05 percent. Indian markets ended mixed in the previous session. The Nifty rose for a second consecutive day, gaining 53 points, or 0.23 percent, to 23,271, while the Sensex eased 22 points, or 0.03 percent, to 74,315.

Asian markets surge, US Treasury yield slips below 5%

Asian equities advanced on Friday as market participants assessed the global shift towards tighter monetary policy, while the pullback in oil and some stability in bond markets improved risk appetite. Market participants are additionally awaiting an anticipated interest-rate gain from the Bank of Japan.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.55 percent. Japan's Nikkei rose 0.9 percent, while South Korea's Kospi surged 2 percent. Bond markets stabilised after another sharp selloff the current week. The benchmark 10-year US Treasury yield was at 4.936 percent, easing back below the 5 percent level after climbing to its highest since 2007.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

Wall Street rallies as oil, Treasury yields ease

US stocks rebounded sharply on Thursday, supported by softer crude prices, easing Treasury yields and solid labour-market data, as market participants moved past the The US central bank's first interest-rate gain in more than three years. Technology stocks led the surge, pushing the Nasdaq Composite up 1.69 percent to 26,418.30. The S&P 500 advanced 1.14 percent to 7,637.74, while the Dow Jones Industrial Average advanced 0.62 percent to 51,779.85.

The Fed had unanimously boosted its benchmark interest rate on Wednesday for the first time since July 2023. Market participants keep expect further tightening.

Brent falls towards $103, but stays elevated

Oil price marks extended their slide for a third consecutive session on Friday, offering some relief to Indian markets after the recent surge. Brent crude futures declined 1 percent to $103.77 a barrel, while West Texas Intermediate declined 1 percent to $100.88. Both benchmarks had additionally eased around 1 percent on Thursday. Prices eased as hopes that alternative routes could help Middle Eastern crude reach global markets outweighed concerns over the continuing conflict between Saudi Arabia and Yemen's Houthis.

Ponmudi R, CEO of Enrich Money, stated the retreat in WTI from its recent peak provides some macroeconomic relief, but oil around $100 stays high enough to keep market participants guarded. He cautioned that continuing geopolitical uncertainty stays a major overhang, with any renewed escalation capable of quickly reversing the recent slide in crude prices.

Ponmudi sees 23,300-23,400 as the immediate resistance zone for the Nifty. A sustained move above 23,400 could extend the recovery towards 23,500-23,600, while 23,100-23,070 stays the crucial backing area.

Foreign institutional market participants continued to pull money out of Indian equities on Thursday, selling a net Rs 3,208.76 crore in the cash market. Domestic institutional market participants remained buyers, purchasing equities worth Rs 3,617.75 crore and providing a counterweight to persistent foreign selling.