Indian stock markets are set for a weak opening on Thursday as global markets face heavy selling. Korea’s Kospi plunged over 7 per cent and Nikkei fell 4 per cent after US inflation hit 3.7 per cent. Ponmudi R said, “The global sell-off has extended into Asian markets,” hurting investor sentiment.
Indian stock markets are likely to open on negative note on Thursday amid global weakness. Korea’s Kospi plunged over 7 per cent and Nikkei per 4 per cent, as the US Treasury yields jumped sharply for a brief while following the release of a hotter-than-expected September Consumer Price Index (CPI) accelerated to 3.7%. Besides, artificial intelligence companies remained under pressure, as memory stocks continued their decline due to fears over competition form Chinese companies.
According to Ponmudi R, CEO of Enrich Money, Sentiment has deteriorated following hotter-than-expected U.S. inflation data, with consumer prices rising 3.7% year-on-year in September compared with 3.4% in August and market expectations of 3.6%. The stronger inflation reading has reinforced concerns that U.S. interest rates could remain elevated for longer, putting pressure on richly valued growth and technology stocks.
“The global sell-off has extended into Asian markets, with the Nikkei 225 declining over 3% and the KOSPI falling more than 6% in early trade, reflecting continued weakness in semiconductor stocks. Meanwhile, WTI crude remains elevated around the $94–95 per barrel range, while persistent FII selling adds to the domestic market headwinds. Rising US Treasury yields and a stronger dollar could further weigh on emerging-market flows and investor sentiment,” he said.
Renewed Houthi attacks on Saudi Arabia have heightened fears of a further escalation in the Middle East, while reports of cargo ships sinking near the Strait of Hormuz have intensified concerns over maritime security. With the crisis already disrupting oil flows, the risk of prolonged supply constraints continues to keep crude prices elevated and inflationary pressures in focus, he further said.
Gift Nifty 22,590, signals a gap down opening of about 70 points.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, the U.S. 10-year Treasury yield edged down to around 5.19%, but the modest decline offers little reassurance given that yields remain near multi-decade highs. “The move does not materially ease concerns over persistent inflation or the prospect of restrictive monetary policy lasting longer. Today’s U.S. producer-price and retail-sales reports will be key in determining whether yields extend their retreat or resume their climb, with implications for the dollar and foreign portfolio flows into emerging markets,” he said.
For India, persistently high oil prices add to inflationary pressures already evident in recent CPI and WPI data, while raising the risk of further cost pressures across the economy, he said adding that With wholesale inflation climbing to 11.39%, sustained energy costs could intensify input-cost pressures for businesses and complicate the outlook for domestic inflation and financial conditions.
However, the Q2 results from Indian companies has so far been better than expected, especially from IT majors.
According to Om Mehra, Technical Research Analyst, SAMCO Securities, in the Derivatives segment, the PCR stood at 0.86, with fresh Call writing concentrated at the 22,700 and 23,000 strikes. “The 22,700 strike, where Put writers were active in the previous session, has now emerged as resistance, indicating a shift in Derivatives positioning. The 23,000 strike carries the highest total Call OI, while the heaviest Put OI is at 22,500, marking the nearest notable support.”
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However, the result season in the US is so far good.
Viram Shah, Founder & CEO, Vested, US companies are entering the Q3 earnings season with a high bar, with analysts expecting S&P 500 earnings to grow 29.6% year-on-year on 12.3% higher revenue, which would mark the third straight quarter of earnings growth above 25%. T”he first round of US bank earnings has been broadly resilient, although the results are more mixed than the headline profit growth suggests. Goldman Sachs was the standout, reporting EPS of $17.01 versus expectations of $13.02, with revenue rising 23% to $18.7 billion, while JPMorgan’s profit grew 6% to $15.3 billion but EPS of $5.57 came in below the $5.85 expected. Citigroup and Wells Fargo also beat profit expectations.”
With 62% of companies issuing positive guidance, compared with a five-year average of 40%, the bigger question for markets is whether this earnings strength can broaden beyond banks, technology and AI-linked companies. For investors, a broader earnings recovery would support a healthier market rally, while continued concentration would make stock selection and valuations increasingly important.”