GIFT Nifty crashes nearly 200 pts, signals gap-down start for Sensex, Nifty; US selloff, rising yields…

As per the latest business developments, Indian key market indices The two key benchmark indices are likely to open sharply softer on Thursday, with GIFT Nifty signalling a gap-down start as rising US Treasury yields, US The US central bank interest-rate gain fears, and a selloff on Wall Street weigh on sentiment. Asian markets were mixed, while a renewed surge in oil price marks in the previous session further noted to concerns, even as Brent eased in early Asian trade.

GIFT Nifty was trading at 23,258 around 7:45 am, down 187 points, or 0.8 percent. Indian markets had rebounded in the previous session, with broad-based buying helping the Nifty reclaim the 23,400 mark. The Sensex rose 299.17 points, or 0.40 percent, to 74,828.25, while the Nifty advanced 117.80 points, or 0.50 percent, to 23,446.80. IT stocks bucked the broader advance.

Asian markets mixed; Nikkei jumps after holiday

Asian equities traded mixed on Thursday, with a firm rebound in Japanese stocks failing to lift the broader regional market. MSCI's gauge of Asian equities declined 0.4 percent, while Hong Kong's Hang Seng declined 0.5 percent and the Shanghai Composite eased 0.4 percent.

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

That stated, Japan's Nikkei jumped 1.4 percent as trading resumed following a three-day holiday, allowing the market to catch up with the recent global surge in AI-related stocks. US equity futures remained under pressure, with S&P 500 futures down 0.2 percent in Asian trading.

Market participants were additionally assessing developments in US-China relations as President Xi Jinping arrived in the US for his first state visit in 11 years. The two countries have agreed to extend their trade truce by two months.

Wall Street falls as Treasury yields surge

US equities declined sharply on Wednesday after stronger-than-anticipated business activity reinforced expectations that the US Fed may need to tighten monetary policy further. US business activity accelerated to its strongest level in more than five years in September, fuelled by a surge in new orders.

The data pushed the benchmark 10-year US Treasury yield to its highest level since 2007, while markets boosted their expectations for another interest-rate gain. Fed funds futures were pricing in a 66 percent probability of an October interest-rate gain, up from 53 percent earlier in the day.

The Dow Jones Industrial Average declined 0.68 percent, while the S&P 500 lost 0.75 percent. The technology-heavy Nasdaq Composite eased 1.13 percent, reversing sharply after hitting a record high on Tuesday.

Brent eases towards $102 after 4% surge

Oil price marks edged softer on Thursday after surging in the previous session, as market participants weighed renewed diplomatic signals from Iran against continuing uncertainty surrounding the conflict. Brent crude futures declined 0.9 percent to $102.13 a barrel, while West Texas Intermediate eased 0.7 percent to $91.56.

The slide followed a sharp surge on Wednesday, when Brent surged 4.28 percent to $103.50 a barrel and US crude advanced 2.3 percent to $92.60.

Ponmudi R, CEO of Enrich Money, stated the rebound in crude prices alongside rising US Treasury yields could prompt some earnings-taking in Indian equities following the market's recent upside.

Ponmudi sees 23,500 as the immediate resistance for the Nifty, followed by the crucial 23,600 level. A sustained move above 23,600 could extend the recovery towards 23,800. On the downside, 23,300 is the immediate backing, followed by 23,200. The GIFT Nifty indication of around 23,258 suggests the index could test this backing region early in Thursday's session.

Foreign institutional market participants snapped a two-session selling streak and purchased Indian equities worth Rs 1,600 crore on Wednesday. Domestic institutional market participants remained buyers, adding another Rs 2,341 crore.