Sensex, Nifty Set For Gap-down Opening As Yields Spike Up

Indian shares look set to tumble on Friday, with IT and commodity-related stocks likely to be hard-hit by a sharp increase in U.S. Treasury yields.

Meanwhile, the initial public offering of Life Insurance Corp. of India got fully subscribed on the second day of the share sale. Bidding for the IPO will continue till 9th May 2022.

Benchmark indexes Sensex and the Nifty gave up early gains to end on a flat note Thursday, while the rupee surged 16 paise to close at 76.24 against the U.S. dollar.

Asian markets were moving lower this morning and gold pulled back, while the dollar held near a 20-year high against a basket of currencies

Oil dipped on worries about an economic slowdown and as OPEC and its allies stuck to a small, planned increase in oil production.

U.S. stocks pulled back sharply overnight, as investors fretted about the Fed’s tightening moves on consumer demand and the broader economy.

The tech-heavy Nasdaq Composite plunged as much as 5 percent to its lowest closing level in well over a year as the yield on the benchmark ten-year note soared to its highest levels in well over three years. The Dow lost 3.1 percent and the S&P 500 shed 3.6 percent.

European stocks closed mostly lower on Thursday amid concerns about higher inflationary pressure, with the Bank of England warning of recession risks.

The pan European Stoxx 600 declined 0.7 percent. The German DAX dropped half a percent and France’s CAC 40 index slid 0.4 percent while the U.K.’s FTSE 100 inched up 0.1 percent, supported by a slump in sterling.