Indian Shares Jump At Pre-Open As Benchmarks Set For Positive Start After Losing Streak 

Mumbai, August 20: Indian shares rose at pre open signalling a higher start for benchmarks after a losing streak spanning several days as global shares responded positively to US Treasury intervening in the bond markets. 

US Treasury’s move pushed bond yields lower. Rising US bond yields can erode the appeal of Indian and other emerging-market assets for overseas investors, adding to an already heavy selling trend. Foreign investors have pulled a record $24.7 billion from Indian equities so far in 2026. 

Nifty 50 rose 0.4% and Sensex advanced 0.6% at pre open. 

The Nifty 50 has extended its losing streak to seven sessions, its longest such run in 11 months, shedding 2.1% as surging crude prices and elevated bond yields prompted investors to turn more cautious toward riskier assets.  

On Wednesday, foreign investors turned net buyers of Indian equities, purchasing shares worth ₹410 crore, provisional exchange data showed, their third buying session in the past four.  

Newly listed IT solutions provider Xtranet Technologies is expected to draw attention after reporting year-on-year growth in both revenue and profit for the June quarter.  

Lohia Corp also reported a strong Q1 performance, with profit surging four-fold and revenue rising 59.5% from a year earlier. 

Asian markets gain 

Asian equities traded mostly higher in early deals after the US Treasury said it would double the size of its long-duration debt buybacks, easing some pressure in global bond markets. The move pushed US Treasury yields lower, with the 10-year yield slipping to around 4.65% and the 30-year yield easing to about 5.19%. 

Lower yields offered some respite to risk assets following a sharp selloff in global bonds earlier this week, as investors reassessed the outlook for interest rates and government borrowing. 

Japan’s Nikkei advanced 1%, while the broader Topix gained 0.9%. South Korea’s Kospi surged 6%, buoyed by renewed strength in semiconductor stocks after SK Hynix announced a $28.6-billion share buyback. The MSCI Asia Pacific index excluding Japan rose 1.7%. 

The gains come after a recent selloff in technology and semiconductor stocks, triggered by concerns over stretched valuations and whether the scale of investment in artificial intelligence can justify the sector’s lofty expectations. 

Wall Street rebounds 

US equities recovered on Wednesday, with the Dow Jones Industrial Average and S&P 500 snapping a three-session losing streak. The rebound was aided by a pullback in longer-dated Treasury yields following the US government’s move to step up its debt buyback programme. 

However, concerns around expensive technology stocks remain. The recent rise in bond yields had prompted investors to cut exposure to high-growth and semiconductor stocks, raising questions over valuations across the AI-driven technology sector. 

A sustained recovery in US technology shares could provide some support to Indian IT stocks, although global risk appetite remains sensitive to movements in bond yields. 

Oil remains a key risk 

Crude oil prices continued to trade near their highest levels in almost a month, keeping pressure on oil-importing economies such as India. Brent crude rose 0.3% to $91.9 a barrel on Thursday, while West Texas Intermediate crude was around $84.5, up 0.1%. Both benchmarks gained for a fourth consecutive session on Wednesday and touched their highest levels since July 24. 

Investors remain focused on developments around the Strait of Hormuz, a crucial route for global oil supplies. While the US maintains that the waterway remains open, Iran has said it is blocked, while some shipowners have opted to avoid the route amid heightened risks. 

The uncertainty has kept a geopolitical premium in crude prices. For India, a prolonged period of oil above $90 a barrel could weigh on market sentiment, while also putting pressure on the rupee, inflation and profit margins of oil-consuming companies. 

Source

• Exchanges