Indian Equities Poised for Positive Open as US Treasury Debt Measures Ease Global Yields
Indian markets are set for a positive session as US Treasury debt buyback plans ease global bond yields, supporting risk appetite across Asian equities.
Indian equities are signaling a positive open on Thursday, with the GIFT Nifty trading 126 points, or 0.52 percent, higher at 24,216. This early strength follows a broader rally in Asian markets driven by easing pressure in global bond markets.
The positive sentiment stems from the US Treasury’s announcement of plans to buy back longer-dated debt to curb borrowing costs. This move helped calm a bond market where long-end yields had recently hit their highest levels since 2007, subsequently pushing the US dollar to a three-month low and boosting global risk appetite.
Asian indices mirrored this optimism early in the session. Japan’s Topix advanced 0.6 percent, Australia’s S&P/ASX 200 gained 0.5 percent, and Hang Seng futures rose 0.9 percent. US markets also closed modestly higher on Wednesday, supported by easing government bond yields and a sharp rally in healthcare shares.
Domestically, institutional support remains robust. Foreign portfolio investors net bought 407 crore rupees worth of Indian shares on Wednesday, while domestic institutional investors purchased a net 3,974 crore rupees. Meanwhile, the India VIX fell 0.6 percent to settle at 11.32, indicating reduced market fear.
Despite the upbeat opening, technical analysts warn that the Nifty must sustain levels above 24,000. A failure to hold this threshold could trigger significant bearish momentum, prompting traders to maintain strict stop-losses on long positions.
The Indian rupee recently touched its weakest level since late July, pressured by elevated oil prices and persistent corporate dollar demand. However, probable central bank intervention has contained further depreciation. In commodities, gold hovered near a two-month high following the US liquidity support measures, while oil prices steadied as traders monitored the outlook for a US-Iran war and shipping security in the Strait of Hormuz.
In the derivatives segment, Bandhan Bank, Manappuram, and SAIL have entered the futures and options ban period. This restriction applies as their market-wide position limits have crossed the 95 percent threshold.
