Indian Stocks Rise Amid Global Caution; DIIs Support

Indian equity benchmarks commenced trading on Friday with a marginal uptick, despite a prevailing cautious global sentiment. Investors closely monitored US Treasury yields, crude oil prices, and foreign fund flows, which influenced market direction.

Key Market Moves

• The BSE Sensex opened at 77,702.18, marking a 0.21 percent increase.
• The NSE Nifty50 stood at 24,284.05, up by 0.22 percent in early trading.

Globally, most Asia-Pacific markets registered declines on Friday, mirroring losses observed on Wall Street. These international movements were primarily driven by a significant increase in US Treasury yields, impacting market sentiment.

Global Yields & Oil Impact

• The 10-year US Treasury note yield climbed to 4.704 percent.
• The 30-year Treasury yield increased to 5.248 percent.
• Crude oil prices remained elevated, trading above the $90-per-barrel mark.

The rise in crude oil prices was partly attributed to US Treasury Secretary Scott Bessent’s announcement of impending tough sanctions on Iran. This elevation in crude oil is critical for Indian markets, affecting inflation, the rupee’s value, and corporate profitability.

Precious Metals & Institutional Flows

• Domestic 24-carat gold saw a 0.94 percent increase to Rs 1,59,580 per 10 grams.
• Domestic silver prices rose by 2.76 percent to Rs 2.44 lakh per kilogram.
• Foreign institutional investors (FIIs) sold shares worth Rs 583.36 crore on August 20.
• Domestic institutional investors (DIIs) purchased equities valued at Rs 3,537.71 crore.

This divergence in institutional investment patterns, with robust DII purchasing, provided crucial support to the market amidst the foreign outflows. DII activity served as a stabilizing factor against the backdrop of global uncertainties and FII selling pressure.