Indian Stocks See Volatile Friday Amid Global Cues, Oil Worries, and Rising Yields

Indian stock markets are seeing a volatile Friday, trading mostly flat after a tough week, as rising global bond yields and stubbornly high crude oil prices keep investors on edge. The benchmark Sensex and Nifty indices, after a sharp 1.7% drop on Thursday, showed mixed signals today, with some sectors gaining while IT stocks dragged down the overall mood. This cautious sentiment comes despite a slight easing in oil prices, driven by hopes of a potential US-Iran truce. The broader picture reveals that India's market has been losing ground for seven straight weeks, its longest such streak since 2020, mainly due to external pressures. The US 10-year Treasury yield, now over 5.2%, is making global equities less attractive, while Brent crude oil prices hovering around $105-$106 per barrel are sparking inflation fears for a major oil importer like India. Geopolitical tensions, particularly renewed clashes between the US and Iran near the crucial Strait of Hormuz, are keeping crude elevated and adding to market uncertainty, with Foreign Institutional Investors (FIIs) pulling out significant funds. Looking ahead, market participants will be closely watching for any concrete developments in the US-Iran situation, which could significantly impact oil prices and investor confidence. Domestically, the Reserve Bank of India (RBI) is widely expected to hike interest rates around October 7 to counter rising inflation, a move that will further influence bond yields and borrowing costs. Until global headwinds ease and clarity emerges on central bank actions, Indian equities are likely to remain sensitive and trade within a narrow, cautious range.