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Indian markets could open flat to mildly higher, in line with flat Asian markets today and despite positive US markets on Thursday  - HDFC Securities

U.S. stocks closed up sharply Thursday, extending gains a day after the Federal Reserve offered no surprises, signaling that it is on track to start scaling back bond purchases this year, and perhaps raise interest rates next year, assuming a continued economic recovery from the pandemic. With the Fed out of the way for now, investors were set to turn their attention to the third-quarter earnings season.

The prospect of tighter monetary policy spurred a global selloff in bonds. Long-term Treasury yields surged the most in 18 months as traders brought forward their expectations for the first Fed rate hike to the end of 2022. 10 year yields in the US rose 11.6 bps to 1.427%.The Bank of England opened the door to a 2021 rate increase, pushing down 10-year gilts. Norway's central bank raised its benchmark interest rate and said it expects to hike again in December, joining a growing list of nations moving away from emergency-level borrowing costs. The South African Reserve Bank left the key interest rate unchanged at a record low of 3.5% as expected, but raised its economic growth forecast for 2021 to 5.3% from 4.2%

Chinese property developer Evergrande has not said whether it will fulfil its interest payments to investors on its U.S.-dollar bond – a key milestone investors have been keeping their eyes on. The interest payment due Thursday amounted to $83 million. It was for a $2 billion dollardenominated bond that’s due to mature in March 2022. Dollar bonds are typically held by foreign investors. The Wall Street Journal reported Thursday that Chinese authorities have told local officials to prepare for a potential demise of Evergrande. Shares of cash-strapped China Evergrande fell as much as 6% in early trade on Friday, paring gains of nearly 18% the previous day as time ticked by on an interest payment deadline for the country's most indebted developer.

Accenture Plc.'s revenue rose in the fourth quarter, aided by improved business across its various arms. Q1 guidance implies continued growth acceleration at the high end, also driving FY22 guidance of 12-15%, well above street expectations. This could have a positive impact on IT stocks in India.

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