Indian markets expected to open lower after US yield surge
Indian stock markets are expected to open lower today, following a sharp drop in Asian markets.
Big losses in South Korea and Japan were triggered by a spike in US Treasury yields after inflation data came in higher than expected.
This has especially hit tech and semiconductor stocks, setting a cautious mood across the region.
Oil and outflows pressure Indian markets
High crude oil prices and foreign investors pulling out are adding more pressure on Indian markets.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, points out that 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.
On the bright side, strong earnings from Indian IT companies have offered some support. Still, rising resistance levels and mixed signals from US company results mean things could stay uncertain for a while.