India Market Recap

Indian equity benchmarks traded largely flat on Thursday as investor sentiment remained subdued amid elevated crude oil prices and rising global bond yields. Higher energy costs and bond yields continued to raise concerns over inflation and the possibility of interest-rate hikes by major central banks, particularly the US Federal Reserve. The Sensex remained flat, while the Nifty 50 held above 23,400. Broader markets also remained muted, with the Nifty Midcap 100 and Smallcap 100 trading flat with a negative bias. On the technical front, Nifty support is placed at 23,250–23,300, while resistance is seen at 23,570–23,625.

US Market Recap

US equities declined on Thursday as a sharp rise in crude oil prices intensified concerns over inflation and higher interest rates, while the prolonged US-Iran conflict continued to weigh on sentiment. Markets increased bets on a Fed rate hike next week to around 70% and are now fully pricing in a move by October. The S&P 500 fell for a fourth consecutive session, its longest losing streak since June, declining 0.6%. The Nasdaq 100 dropped 1.1%, while the Dow Jones Industrial Average slipped 0.6%. The market also reacted to the US Treasury’s $5.19 billion debt buyback, which was below the previously indicated amount.

Asian Market Update

Asian equities and bonds opened lower as surging crude oil prices triggered a selloff in US markets, while fresh inflation data strengthened expectations of an imminent Federal Reserve rate hike. The MSCI Asia Pacific Index declined 1.3%, led by losses in Japan and South Korea. Asian government bonds also followed the decline in US Treasuries. Australia’s three-year bond yield jumped as much as 20 basis points to 5.05%, its highest level since 2011, while New Zealand’s two-year yield climbed 21 basis points.

Commodity Check

Brent crude extended its rally as intensifying fighting in the Middle East fuelled concerns over further supply disruptions. Brent traded near $108 a barrel after surging more than 6% in the previous session, putting prices on track for their strongest weekly gain since July. WTI crude traded around $103 a barrel. Gold remained under pressure and was headed for a third consecutive weekly decline as higher oil prices and the latest US inflation data strengthened expectations of a Federal Reserve rate hike next week. Spot gold slipped 0.1% to $4,312.20 an ounce and was on track for a 2.7% weekly decline, after falling 1.8% in the previous session to its lowest level since early August. Silver declined 0.3% to $63.40 after plunging 5.5% on Thursday, while platinum and palladium also retreated.

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