Indian shares eye positive start after sharp drop, but elevated oil, yields weigh

Business Recorder reported that Indian equities are likely to open firmer on Friday after Thursday's sell-off, the largest in 10 weeks. GIFT Nifty futures were quoted at 23,116 points at 7:40 a.m. IST, compared with the Nifty 50's Thursday close of 23,063.1. Still, high crude prices and rising global bond yields are expected to keep pressure on the market.

The benchmark Nifty 50 and BSE Sensex recorded their biggest daily percentage decline in 10 weeks on Thursday, as surging oil prices fuelled inflation worries and financial stocks fell on proposed caps to insurance commissions. The two indices are down 1.2 per cent and 1 per cent this week, putting them on course for a seventh consecutive weekly loss.

Oil eased slightly on Friday but held near $106 per barrel, as traders weighed a possible US-Iran truce against Houthi rebel attacks that bombed Saudi Arabia. Higher crude has also lifted yields on US 30-year Treasuries to a peak not seen in over 20 years. Overseas funds offloaded Indian equities valued at 50.27 billion rupees ($523.89 million) in Thursday's session, provisional figures show.