Shares on track for higher open on lower Treasury yields, SEBI relief
GIFT Nifty futures were at 23,082 at 7:52 a.m. IST, indicating a positive start for Nifty 50, which closed at 22,997.35 on Thursday
Indian shares are expected to open higher on Friday, building on their rebound from the previous trading day, thanks to a decline in US Treasury yields and adjustments made by SEBI to the stock market's closing auction process. GIFT Nifty futures were trading at 23,082 at 7:52 a.m. IST, pointing to a buoyant start for the benchmark Nifty 50, which had closed at 22,997.35 the previous day.
On Thursday, both the Nifty 50 and the BSE Sensex recorded their largest single-day gains in four months, as a resurgence in global AI trade and earnings-boosted optimism fueled stock prices. The Securities and Exchange Board of India (SEBI) announced on Thursday that it would utilize volume-weighted average prices from the last 30 minutes of regular trading to settle expiring stock and index derivative contracts, following opposition from traders.
This shift, away from the previous use of the closing auction session (CAS), is anticipated to lessen expiry-day volatility, benefiting market participants whose orders were below pre-CAS levels. Simultaneously, longer-dated US Treasury yields dropped to their lowest in September, reflecting doubts about the pace of artificial intelligence (AI) growth and expectations that the Federal Reserve might keep interest rates unchanged at its upcoming meeting.
Despite this optimistic outlook, the recovery may be somewhat uncertain due to concerns over high oil prices and inflation, which could keep investors on the sidelines. Foreign investors sold Indian shares worth 52.85 billion rupees ($555.99 million) on Thursday, bringing the total offloading to $32.8 billion so far in 2026. Asian stocks edged up 1% early on Friday, with a rebound in the tech sector following a Thursday sell-off and as lower bond yields reduced pressure.
Notably, Wipro met second-quarter revenue forecasts slightly but saw a steep drop in quarterly deal bookings, reigniting concerns about the Indian IT giant losing market share to competitors. Meanwhile, Jio Financial Services reported a sharp increase in adjusted operating profit for the second quarter, driven by a rise in its lending operations.
HDFC Life Insurance also announced a higher quarterly profit, buoyed by a recovery in policy sales facilitated by its parent company, HDFC Bank. Tech Mahindra exceeded revenue predictions for July-September and maintained its operating margin target for fiscal 2027, thanks to a surge in large deals across communications and other sectors.
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