27-10-2023 08:40 AM | Source: Reuters
Indian shares set to open higher as US treasury yields ease

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India's blue-chips are set to open higher on Friday after logging losses over the last six sessions as U.S. treasury yields retreated following weaker-than-expected inflation data.

India's GIFT Nifty was up 0.42% at 18,991.50 as of 8:11 a.m. IST, more than 100 points above the Nifty 50's Thursday close of 18,857.25.

The Nifty 50 and Sensex have lost nearly 5% each over the last six sessions, settling at near four-month lows on Thursday.

So far this week, the Nifty is down 3.51%, on course for the worst week in 16 months.

Meanwhile, Asian markets rose on Friday, with the MSCI Asia ex Japan index adding 0.8%.

Wall Street equities closed lower overnight on mixed economic data and weak earnings. [MKTS/GLOB]

While an advance estimate of the third-quarter gross domestic product (GDP) showed that the U.S. economy grew at the fastest pace in nearly two years, business investment softened.

However, U.S. treasury yields, which rallied to 16-year highs earlier in the week on expectations of higher-for-longer rates by the Federal Reserve, eased on data showing cooling inflation.

Core personal consumption expenditure, the Fed's preferred inflation gauge, came in at 2.4%, its lowest since the fourth quarter of 2020.

Brent crude futures hovered around $88.50 per barrel, after sliding in the previous session.

Crude prices have been volatile, since the Israel-Hamas clashes began. Brent Crude rose from $84.50 on Oct. 6 to $93 per barrel on October 20, before easing over the last week.

The rise in oil prices is negative for importers of the commodity, like India. [O/R]

Foreign institutional investors (FIIs) sold 77.03 billion rupees ($925.57 million) worth of shares on a net basis on Thursday, while domestic institutional investors (DIIs) bought a net 65.58 billion rupees of shares.

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** Vodafone Idea: Telecom operator posts wider-than-expected loss in September quarter as user base shrinks.