GIFT Nifty signals flat start for Sensex, Nifty after sharp selloff; high bond yields, crude remain key…

New business data points to the fact that Indian key market indices The two key benchmark indices are likely to open largely flat on Friday after suffering a sharp selloff in the previous session, with GIFT Nifty showing little movement even as elevated US Treasury yields and oil price marks keep weigh on sentiment. A modest pullback in crude prices and a relatively steady overnight session on Wall Street could provide some relief, but heavy foreign institutional selling stays a key domestic headwind.

GIFT Nifty was trading at 23,092 around 8 am, down 5 points, or 0.02 percent. Indian equities suffered steep losses on Thursday amid weak global cues, surging crude prices and a continued climb in US bond yields. The Sensex plunged 1,247.71 points, or 1.67 percent, to 73,580.54, while the Nifty tumbled 383.70 points, or 1.64 percent, to 23,063.10, leaving the psychologically important 23,000 level in focus.

Asian markets mixed as bond selloff weighs

Asian markets were mixed on Friday as market participants grappled with a relentless global bond selloff that has pushed longer-dated US yields to two-decade highs and boosted borrowing costs across markets. The sharp climb in global bond yields has increased concerns over equity valuations, particularly as oil above $100 threatens to keep inflation elevated and reinforce expectations of further monetary tightening by the US The US central bank.

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

MSCI's broadest index of Asia-Pacific shares outside Japan was broadly flat, although trading was thin with markets in mainland China, Taiwan and South Korea closed for holidays. Japan's Nikkei advanced 1 percent, while Hong Kong's Hang Seng declined 1 percent. Australia's resource-heavy market declined 0.6 percent.

Ponmudi R, CEO of Enrich Money, stated the US 10-year Treasury yield has moved above 5.20 percent and stays close to multi-year highs, tightening global financial conditions and reducing the relative attractiveness of emerging-market equities.

Brent eases but stays above $105

Oil price marks edged softer on Friday after a volatile week, although Brent remained above $105 a barrel and continued to pose a significant risk for India. The slide came as market participants weighed the possibility of a US-Iran truce against continuing geopolitical risks following Houthi attacks on Saudi Arabia.

Brent crude futures declined 0.82 percent to $105.73 a barrel, while West Texas Intermediate declined 1.65 percent to $93.05. Crude prices had surged to a one-week high on Thursday, with both benchmarks gaining as much as 5 percent during the session.

Wall Street recovers from lows on US-Iran talks report

US stocks ended broadly flat on Thursday after recovering from session lows as market participants assessed developments in the Middle East alongside elevated crude prices and Treasury yields. US equities recovered from their intraday lows after a note stated US and Iranian negotiators were exploring a phased route out of the conflict.

The S&P 500 eased 0.02 percent to 7,704.13, while the Nasdaq Composite edged up 0.01 percent to 26,939.37. The Dow Jones Industrial Average declined 0.31 percent to 51,349.98.

Ponmudi anticipates 23,200-23,300 to act as the immediate resistance zone for the Nifty, while 23,000 stays the key psychological backing. A decisive break below 23,000 could extend the slide towards 22,900-22,800, while a sustained close above 23,300 could trigger a relief move towards 23,400-23,500.

Foreign institutional selling intensified during Thursday's sharp domestic market slide, with FIIs offloading Indian equities worth more than Rs 5,000 crore. Domestic institutional market participants continued to provide backing, purchasing equities worth around Rs 4,300 crore.

Ponmudi stated foreign institutional selling has emerged as a significant headwind for the domestic market, particularly against the backdrop of elevated US yields.