Nifty Set to Open Lower Amid Wall Street Sell-Off; Focus Shifts from Tariffs to Rising Yields, with ITC Q4 Results in Spotlight
Indian equity benchmarks are likely to open on a weak note this Thursday, May 22, as sentiment turns cautious amid negative global cues. Bears aim to take over the negative baton from a weak Wall Street, where the Dow Jones logged its worst day in a month during overnight trade.
As of 07:25 am, the Gift Nifty hovered near the 24,775 mark, down 55 points from the previous close.
On Wednesday, the Indian stock market closed on a positive note, breaking a three-day losing streak as strong buying in heavyweight stocks provided support. In contrast, Asian markets moved lower, and U.S. equities witnessed a sharp sell-off overnight, with all three major Wall Street indices recording their steepest single-day decline in a month.
Despite the sentiment turning sour on the back of weak global cues, stock-specific action is likely to continue amid Q4 earnings. On Thursday, prominent Indian companies are scheduled to announce their Q4 results.
ITC, Sun Pharmaceutical Industries, Grasim Industries, GMR Airports, Container Corporation of India, Metro Brands, The Ramco Cements, Emcure Pharmaceuticals, Gujarat State Petronet and Deepak Fertilisers and Petrochemicals Corporation are scheduled to announce their Q4 earnings today.
On May 21, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹2,201.79 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares amounting to ₹683.77 crore during the same session.
On Wednesday, the Indian stock market bounced back after a three-day decline, supported by gains in heavyweight stocks. The Sensex rose by 410.19 points (0.51%) to end the session at 81,596.63, while the Nifty 50 advanced 129.55 points (0.52%) to close at 24,813.45.
Asian markets traded lower on Thursday, tracking overnight losses on Wall Street.
U.S. stocks witnessed a steep decline on Wednesday, driven by a surge in Treasury yields amid growing concerns that the national debt could rise significantly if Congress approves President Donald Trump’s proposed tax cuts.
The 30-year Treasury bond and the 2-year Treasury note both crossed psychologically significant thresholds– the long issue above 5%, the short above 4%
The Dow Jones Industrial Average tumbled 816.80 points, a fall of 1.91%, ending the day at 41,860.44. The S&P 500 shed 95.85 points, or 1.61%, to close at 5,844.61. Meanwhile, the Nasdaq Composite slipped 270.07 points, or 1.41%, finishing at 18,872.64.
Yields on longer-term U.S. Treasury securities climbed following a $16 billion auction of 20-year bonds by the Treasury Department, which drew weaker investor interest. The benchmark 10-year Treasury yield rose by 10.8 basis points to reach 4.589%, marking its highest level since mid-February during the session.
Post-auction, the yield on 20-year bonds moved up to 5.127%, a level not seen since November 2023. Similarly, the 30-year Treasury yield increased by 11.5 basis points to 5.0817%, compared to 4.967% recorded on Tuesday.
Crude oil prices moved lower as unexpected increases in US crude and fuel stockpiles raised concerns about demand. Brent crude slipped by 0.55% to $64.55 per barrel, while West Texas Intermediate (WTI) crude dipped 0.52% to trade at $61.25.
Gold prices climbed modestly as investors shifted toward safer assets amid a weaker US dollar. Spot gold rose by 0.2% to $3,320.37 an ounce.
Disclaimer: The article is for informational purposes only and not investment advice.
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