Global Sell-Off - Impact on Indian Markets

Indian markets are likely to witness a weak start on Monday as negative global cues weigh on investor sentiment. Wall Street ended sharply lower on Friday, with the Nasdaq leading losses after stronger-than-expected US jobs data pushed Treasury yields higher and reduced expectations of near-term Federal Reserve rate cuts. Rising bond yields and a strengthening US Dollar Index triggered profit booking in technology and growth stocks across global markets. Adding to the pressure, GIFT Nifty was trading nearly 300 points lower, indicating a gap-down opening for domestic equities. The surge in US bond yields has increased the attractiveness of dollar-denominated assets, which could keep foreign investor flows cautious in emerging markets, including India. Sector-wise, IT stocks may remain under pressure as US technology shares witnessed heavy selling, while rate-sensitive sectors could also see some volatility. However, any sharp decline may attract selective buying at lower levels as domestic fundamentals remain relatively stable. Investors are likely to closely monitor global bond yields, FII activity, and key support zones on the Nifty for further directional cues. Overall, Monday's session may begin on a cautious note with a negative bias, though stock-specific action is expected to continue. $INFY $TCS $WIPRO $HCLTECH $TECHM