Indian equity markets are indicating a weak start on Wednesday, with GIFT Nifty trading around 23,445, down nearly 120 points or 0.51% at approximately 7:15 a.m., signalling a subdued opening for domestic benchmarks.
The anticipated weakness follows declines in Asian and U.S. markets amid concerns over inflation, elevated bond yields and higher crude oil prices, which have affected investor sentiment globally. GIFT Nifty was trading lower in early trade, indicating potential pressure on Indian equities at the opening.
U.S. equity markets closed lower on Tuesday, primarily due to concerns over inflation pushing the 10-year U.S. Treasury yield to its highest level in more than a year. Rising crude oil prices and tensions between the U.S. and Iran also weighed on investor sentiment.
Asian markets also traded lower on Wednesday as rising global bond yields and inflation concerns prompted investors to reduce exposure to riskier assets.
Indian markets are facing pressure from multiple factors, including continued weakness in the rupee, elevated crude oil prices, selling in global markets and a sharp rise in bond yields.
Although foreign institutional investors (FIIs) have remained net buyers in recent sessions, experts said markets could remain range-bound or under pressure in the short term.
Several companies are scheduled to announce fourth-quarter results on Wednesday, which could influence market activity. Quarterly earnings from Grasim Industries, Apollo Hospitals Enterprise, Lenskart Solutions, Ola Electric Mobility and Bosch India will remain in focus.
BPCL reported a marginal decline in profit to ₹3,191.5 crore, while revenue increased 6.7%.
Zee Entertainment Enterprises reported a quarterly loss of ₹102.4 crore compared with a profit in the corresponding period last year.
Trident Limited reported declines in both profit and revenue.
Borosil Limited reported a marginal decline in profit and a slight increase in revenue.
Karnataka Bank reported profit growth of more than 61% during the quarter.
Godawari Power and Ispat reported growth in both profit and revenue.
Hatsun Agro Product and Mankind Pharma reported growth during the quarter.
JSW Energy signed an agreement to acquire an additional stake in partnership with Toshiba.
Aditya Birla Capital received approval from the Reserve Bank of India to commence a factoring business.
Experts said markets are currently being influenced more by global cues, while rising bond yields and higher oil prices could sustain near-term volatility. Strong corporate earnings, however, may support select stocks.
