Indian Shares Seen Tad Higher At Open

(RTTNews) - Indian shares look set to open higher on Friday after a heavy sell-off in the previous session.

Underlying sentiment, however, may remain cautious as elevated oil prices and a deepening bond sell-off fueled expectations for further interest-rate hikes by the Federal Reserve.

The 30-year U.S. Treasury yield surged to the highest since 2004 in the New York session and the benchmark 10-year yield rose to 5.20 percent as an expanded Treasury buyback operation fell short of market expectations.

Meanwhile, after a broader review of PMS regulations, capital market regulator SEBI has approved various proposals, including a comprehensive overhaul of portfolio manager rules and allowing foreign portfolio investors to participate in physically settled, non-agricultural commodity derivative contracts.

Benchmark indexes Sensex and Nifty slumped 1.7 percent and 1.6 percent, respectively on Thursday, with financials leading losses after the IRDAI proposed a sweeping revamp of insurance distribution rules through a new consultation paper.

The rupee fell by 26 paise to close at 95.99 against the U.S. dollar as rising inflation concerns and geopolitical uncertainties pushed U.S. bond yields higher. Foreign institutional investors (FIIs) net sold shares worth Rs 5,027.36 crore on Thursday, while domestic institutional investors (DIIs) net bought shares to the extent of Rs 4,301.18 crore, according to provisional exchange data.

Asian stocks were mixed this morning, with Japan's Nikkei rising more than 1 percent while Hong Kong's Hang Seng tumbled nearly 2 percent as investors watched U.S.-China talks during Xi Jinping's Washington visit.

Markets in South Korea, Taiwan and mainland China were closed for public holidays.

The U.S. dollar index held gains from the previous session while gold edged up around half a percent to hover near $4,290 an ounce.

Brent crude futures fell nearly 1 percent to $105.62 a barrel after a two-day rally.

U.S. stocks ended little changed overnight, after having slumped early in the session in the wake of surging oil prices, rising bond yields and hawkish Federal Reserve commentary.

The major averages climbed well off their lows after reports emerged that U.S. and Iranian negotiators are exploring a phased deal that would see Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iranian ports.

While the tech-heavy Nasdaq finished marginally higher, the S&P 500 edged down marginally and the Dow dipped 0.3 percent as the 10-year yield hovered near levels not seen since July 2007 on renewed concerns about inflation and interest rates.

European stocks ended lower for a second straight session on Thursday as investors weighed lingering tensions in the Middle East and awaited the outcome of U.S.-China talks.

The pan-European STOXX 600 dropped 0.6 percent. The German DAX declined 0.6 percent, France's CAC 40 fell half a percent and the U.K.'s FTSE 100 slipped 0.2 percent.