GIFT Nifty falls, signals gap down start for Sensex, Nifty; Asian markets subdued, FII selling weighs

As per the latest business developments, Indian key market indices are likely to open softer on Thursday, with GIFT Nifty signalling a soft opening for the The two key benchmark indices as subdued Asian markets, elevated US Treasury yields and persistent foreign selling weigh on sentiment. That stated, softer-than-anticipated US inflation has sharply reduced expectations of another The US central bank interest-rate gain in October, while firmer US equity futures and Brent crude below $100 a barrel offer some relief.

GIFT Nifty was trading at 22,592 around 8 am, down 67.5 points, or 0.30 percent, after Indian equities failed to hold their intraday upside on Wednesday and closed marginally softer, extending their slide for a third consecutive session. The Sensex eased 48.78 points, or 0.07 percent, to 72,480.29, while the Nifty declined 95.75 points, or 0.42 percent, to 22,620.45.

Foreign flows stay a key headwind after FIIs extended their selling streak to a fifth session on September 30, offloading more than Rs 10,000 crore of Indian equities for a second straight day, against the backdrop of elevated US Treasury yields. Domestic institutions continued to provide a firm counterweight, buying equities worth Rs 11,271 crore.

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Asian markets subdued; US futures edge elevated

Asian equities traded largely subdued on Thursday after a difficult September for global bonds, with market participants assessing the implications of softer US inflation for the The US central bank's policy outlook. MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.2 percent, while South Korea's Kospi eased 0.14 percent.

Japan bucked the regional trend, with the Nikkei gaining more than 1 percent as semiconductor-related shares advanced. US equity-index futures were firmer, with both S&P 500 and Nasdaq futures up around 0.3 percent.

Ponmudi R, CEO of Enrich Money, stated the external backdrop stays mixed, leaving Indian equities sensitive to developments in both global interest rates and energy markets. The sharp climb in the US 10-year Treasury yield in recent weeks has tightened global financial conditions and weighed on broader risk appetite, he stated.

Softer US inflation cuts Fed rate-hike bets; Wall Street mixed

A softer-than-anticipated US inflation reading prompted traders to scale back expectations of another The US central bank interest-rate gain, with the probability of an October move falling to 38 percent from nearly 71 percent a week earlier. Rate-hike expectations were further tempered by New York Fed President John Williams' comment that there was "no urgency" for further action, after the US Fed boosted rates in September for the first time in three years.

US equities ended mixed on Wednesday as market participants assessed the softer inflation print against continued pressure from elevated bond yields. The Dow Jones Industrial Average eased 443.87 points, or 0.86 percent, to 50,906.05, while the S&P 500 declined 0.25 percent to 7,651.54. The technology-heavy Nasdaq Composite advanced 0.24 percent to 26,861.06.

Despite Wednesday's mixed finish, both the S&P 500 and Nasdaq recorded their second consecutive quarterly upside. Brent slips below $100

Oil price marks were little changed in early Asian trading as market participants assessed developments in US-Iran peace negotiations and the outlook for Middle East exports. Brent crude edged 0.1 percent elevated to $98.15 a barrel, while West Texas Intermediate eased 0.1 percent to $90.35 a barrel. Both benchmarks had advanced around $1 a barrel on Wednesday.

Brent's move below $100 provides some relief for Indian markets after the sharp climb in energy prices through September. That stated, Ponmudi cautioned that any setback in diplomatic efforts or renewed disruption to energy flows could quickly restore the geopolitical risk premium in crude prices.