Indian shares set to open higher as global bond markets steady

On Thursday, Indian shares were anticipated to open higher, mirroring the rise in broader Asia markets. This was due to global bond markets steadying following the US Treasury's announcement to reduce long-duration debt buybacks, aiming to curb the surge in borrowing costs. The Treasury's action sought to alleviate concerns over rising yields, which had reached a peak since 2007, thus calming investor jitters.

However, elevated crude oil prices and ongoing tensions in the Middle East were viewed as factors that could dampen risk appetite. Despite these concerns, GIFT Nifty futures stood at 24,241 points at 7:56 a.m. IST, suggesting a promising opening for the Nifty 50 index. The index had declined for seven consecutive days, marking its largest drop in 11 months, losing 2.1% as higher oil prices and bond yields reduced the allure of risk assets.

The US Treasury's decision to double the buyback sizes for long-duration debt was expected to provide a boost to investor confidence. Lower bond yields following the announcement made India and other emerging markets comparatively less appealing to foreign investors. In fact, foreign investors had already sold an unprecedented $24.7 billion worth of Indian shares in 2026, with just 4.1 billion rupees net bought on Wednesday, indicating three days of buying in four sessions.

Brent crude futures remained high, hovering around $92 per barrel, as investors weighed the implications of a potential U.S.-Iran war and the safety of shipping through the Strait of Hormuz.