Positive bias seen for Indian stocks at open, but analysts advise caution
GIFT Nifty trades near 23,217, against Nifty’s previous close of 23,118; Rising US bond yields, Brent crude near $108 a barrel and escalating West Asia tensions could keep Indian equities under selling pressure on Wednesday.
Indian stock markets opened on a cautious note on Wednesday, as analysts advised investors to proceed with caution. The focus is on the upcoming US Federal Reserve meeting, given the rise in US yields to historic levels. Analysts highlighted several factors contributing to the market's vulnerability, including rising crude oil prices and heightened tensions in Western Asia.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, noted that the Nifty was trading near 23,217, slightly higher than its previous close of 23,118. However, he cautioned that the recovery could remain fragile due to Brent crude hovering near $108 a barrel and elevated global bond yields, which continue to dampen risk appetite.
Wall Street ended lower as the U.S. 10-year Treasury yield hovered around 5%. Ponmudi R, CEO of Enrich Money, emphasized that crude oil remains the dominant overhang for domestic markets, and even in the previous session, the markets failed to sustain their opening gains. Small- and mid-cap stocks suffered the most due to broad-based selling, with elevated oil prices and firm Treasury yields weighing on investor sentiment.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
