- Indian indices showed mixed trends amid weak global cues.
- US Treasury yields surged, impacting global equity markets.
- Hawkish Fed outlook and rising crude prices caused concerns.
Indian benchmark indices presented a mixed picture in pre-open trade on Thursday, with the Sensex holding in positive territory while the Nifty50 came under sharp pressure amid weak global cues and a jump in US Treasury yields.
The BSE Sensex opened the session just above 74,300, bleeding more than 500 points, while the NSE Nifty50 tanked close to 200 points and tested 23,250, as of 9:15 AM.
GIFT Nifty Signals Gap-Down Opening
The GIFT Nifty had indicated a weak start for domestic equities, with futures quoted at 23,268.50, down 182 points.
The cautious mood followed losses across several global markets as a sharp rise in bond yields fuelled concerns that stronger economic data and hawkish signals from the US Federal Reserve could keep monetary policy tighter for longer.
At around 9:01 am, the Sensex was trading at 75,067.86, up 239.61 points or 0.32 per cent. The Nifty stood at 23,057.85, down 388.95 points or 1.66 per cent.
The sharp divergence between the two benchmarks comes as investors assess rising global bond yields, expectations of further US monetary tightening and elevated crude oil prices.
Asian Markets Mixed Ahead Of Trump-Xi Meeting
Asian markets traded mixed on Thursday as investors looked ahead to a key meeting between US President Donald Trump and Chinese President Xi Jinping, their first meeting in 11 years.
Japan’s Nikkei 225 rose 1.47 per cent, while South Korea’s Kospi gained 0.9 per cent.
In contrast, China’s CSI 300 declined 0.73 per cent, while Hong Kong’s Hang Seng fell 0.68 per cent.
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US Bond Yields Jump, Wall Street Ends Lower
The overnight sell-off in US equities was driven in part by a sharp rise in Treasury yields.
The benchmark yield on the US 10-year Treasury Note surged 15 basis points to 5.11 per cent, marking its biggest single-day increase since former US President Donald Trump’s tariff announcement in 2025, according to Bloomberg.
Robust economic data and hawkish comments from US Federal Reserve Governor Michael Barr fuelled expectations of further monetary tightening in the near term.
Against this backdrop, the Dow Jones Industrial Average fell 0.68 per cent, while the S&P 500 declined 0.75 per cent. The Nasdaq Composite dropped 1.13 per cent.
Crude Oil Stays Above $100
Crude oil prices remained elevated in Asian trading hours, staying well above the $100-per-barrel mark despite giving up some of the previous session’s gains.
September Brent futures were quoted at $102.57 per barrel, down 0.82 per cent on the Intercontinental Exchange.
Elevated crude prices remain a key concern for Indian markets given their potential impact on inflation, the country’s import bill and corporate profitability.
Gold Flat, Silver Slips As Yields Rise
Precious metals also came under pressure as higher US Treasury yields increased the opportunity cost of holding non-yielding assets.
Gold futures were largely flat, while silver futures declined 0.79 per cent in early trade.
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Nifty Faces Key Resistance At 23,500
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the domestic market remained range-bound in the previous session, with the Nifty gaining 118 points and the Sensex rising 299 points.
He said the market structure currently remains “non-directional”, with traders likely awaiting a breakout from the prevailing range.
From a technical perspective, 23,500 on the Nifty and 75,000 on the Sensex are important resistance levels. A sustained move above these levels could take the Nifty towards 23,600-23,650 and the Sensex towards 75,800-76,000.
On the downside, Chouhan identified 23,250 on the Nifty and 74,300 on the Sensex as key levels to watch. A break below these levels could increase selling pressure and drag the Nifty towards 23,150-23,000 and the Sensex towards 74,000-73,600.
He also noted that the previous session saw narrow-range trading, with the Nifty forming a small bullish candle on the daily chart while intraday movement remained range-bound.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
