GIFT Nifty pointed to a firmer open after benchmark indices slumped to multi-month lows, but higher rates, surging oil prices and foreign outflows continued to cloud the outlook.
Indian shares were set for a firmer start on Friday after a bruising session a day earlier, with GIFT Nifty futures trading 125 points higher at 22,380 in early morning deals. The move pointed to a modest rebound in sentiment, although traders remained wary after Thursday’s sharp sell-off, which pushed benchmark indices to multi-month lows. (moneycontrol.com)
Reuters reported that the Reserve Bank of India lifted its repo rate by 25 basis points to 5.50% on Wednesday, the first increase in nearly four years, and that the step has sharpened concerns about tighter financial conditions. The central bank’s shift came as inflation risks, stronger growth and elevated global borrowing costs continued to weigh on risk appetite. (marketscreener.com)
The previous session showed how fragile sentiment has become. Reuters said the Sensex fell 1,045.46 points, or 1.44%, to 71,593.24 on Thursday, while the Nifty lost 371.25 points, or 1.64%, to 22,231.80, with rate-sensitive shares, commodities and fast-moving consumer goods stocks under pressure. The rout deepened as Brent crude climbed above $102 a barrel, stoking worries about inflation, the current account and the rupee. (uk.marketscreener.com)
Foreign selling has added to the strain. Reuters reported that overseas investors have continued to reduce their holdings of Indian equities, while the rupee has weakened towards record lows, intensifying concern that imported inflation could stay elevated. Analysts quoted in the coverage said the near-term direction of oil, bond yields and foreign flows will matter more than any single policy move, even as a softer tone in global markets and lower crude prices could help stabilise domestic stocks. (marketscreener.com)
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