Indian benchmark indices Sensex and Nifty are likely to open flat-to-positive on Thursday, with GIFT Nifty seeing marginal gains after the RBI raised the interest rates for the first time since February 2023. It raised the repo rate by 25 basis points to 5.50 percent, and shifted its stance to ‘calibrated tightening’. Weak Asian and US markets, rising crude oil prices, elevated US Treasury yields, high inflation, soaring debt, and persistent FII selling could weigh on sentiment.
GIFT Nifty was trading at 22,620 around 8:05 am, up 28 points, or 0.12 percent. Indian equity indices ended lower in a volatile session on Wednesday, snapping their two-day winning streak. The Sensex fell 429.11 points, or 0.59 percent, to 72,638.70, while the Nifty declined 173.05 points, or 0.76 percent, to 22,603.05. Foreign institutional investors sold Indian equities worth more than Rs 6,100 crore on Wednesday, while domestic institutions bought shares worth around Rs 4,500 crore.
Asian equities traded lower on Thursday as renewed pressure in sovereign bond markets and rising crude prices weighed on investor sentiment. Reports that major technology companies were seeking to raise billions of dollars in debt added to concerns over competition for funding and the outlook for borrowing costs.
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Japan's Nikkei fell 0.9 percent, while South Korea's Kospi declined 0.6 percent. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.1 percent. US equity futures were largely unchanged, with both S&P 500 and Nasdaq futures trading near the flatline.