At the market open, Sensex and Nifty50 showed a sharp decline. Asian markets were falling amid rising bond yields and oil prices, which negatively affected investor sentiment.
Asian-Pacific region markets traded significantly lower, reflecting similar overnight movements on Wall Street. Traders assessed inflation prospects against the backdrop of high oil prices and rising bond yields. Japan's Nikkei 225 and South Korea's Kospi indices fell by 3% and 2.6%, respectively.
On Thursday, the Dow Jones and S&P 500 indices closed down by 0.6% and 0.58%, respectively, while the Nasdaq Composite finished the session down by 0.65%. The yield on the benchmark 10-year US Treasury bond hovered around the 5% mark, settling at 4.95% on Thursday.
Oil prices lost previously achieved gains after approaching the nearly $110 per barrel mark due to escalating tensions in the Middle East, impacting supply forecasts. Furthermore, Saudi Arabia informed OPEC that its oil production for the last month decreased to its lowest level since 1990. September futures on the International Exchange traded at $107.8 per barrel, down 1.09%.
Gold and silver futures declined by 0.84% and 1.5%, respectively, as interest rate hike expectations by the US Federal Reserve increased following data showing growth in the producer price index last month and revised July data.
Initial Public Offering Today
On Friday, subscriptions will open for Initial Public Offerings (IPOs) of Manika Plastech, Injecto Polymers, and Century Business Media. The second day of subscription will be open for IPOs from Veegaland Developers, Maharaja & Speedex, Om Galaxy, Raksan Transformers, and Panchatv Bharat. In the main market segment, the final subscription day for IPOs from Rentomojo, Asset Reconstruction, Manipal Payment & Identity Solutions, Steamhouse India, LCC Projects, and Karamtara Engineering.
In the SME segment, the final subscription day will also begin for Infrax Renewable, Vinod Texworld, and Amtech Esters.
According to updates, Sensex opened 704 points or 0.94% lower at 74,198 points due to surges in oil prices and bond yields. Nifty was at 23,270 in pre-market trading, which was 207.50 points or 0.88% lower. In pre-market trading, Sensex fell by 593 points or 0.79% to 74,308.
The Rupee opened weaker against the US dollar, dropping 24 paisa to 95.69 from 95.45 at the end of Thursday, according to Bloomberg data. Wipro's CTO stated that the company's AI initiatives have boosted productivity equivalent to the output of 20,000 employees who were redeployed within the Indian IT company.
Vodafone Idea, State Bank of India, Texmaco Rail and Engineering, Punjab National Bank, HDFC Bank, YES Bank, and oil marketing companies are in focus for Friday's trading session.
GIFT Nifty at 23,333
GIFT Nifty was indicated at 23,333, which is 151 points lower. Oil prices recovered from the daily low of $107.29 per barrel amid heightened tensions in the Middle East, putting pressure on supply forecasts. September futures on the International Exchange reached $108 per barrel, up 0.34%, after previously reaching $110.
