Sensex, Nifty Seen Flat Amid Surging Treasury Yields

(RTTNews) - Indian shares may open flat to slightly lower on Friday as investors await earnings results from heavyweight Reliance Industries, which is expected to post robust earnings growth for the July- September quarter.

Banks and financials could be in focus following encouraging earnings results from Axis Bank, Canara Bank and Bajaj Finance.

Meanwhile, India's external buffers appear sufficient to cushion risks associated with rapid monetary policy tightening in the U.S. and high global commodity prices, Fitch Ratings said in a report.

Global sentiment remains fragile after the yield on the benchmark ten-year U.S. note reached a fresh 14-year peak on hawkish Fed comments.

Asian markets were seeing modest losses this morning and the dollar extended gains while gold was on track for its second weekly fall.

Oil prices held steady on demand recovery hopes following reports that Beijing is considering reducing the visitor quarantine period from 10 days to seven days.

U.S. stocks ended in the red overnight and benchmark Treasury yields extended their climb after Philadelphia Federal Reserve President Patrick Harker said that rate hikes will continue "for a while."

Another batch of upbeat earnings news from big-name companies like IBM Corp. and AT&T helped to cap the downside to some extent.

The Dow dipped 0.3 percent, the S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite declined 0.6 percent.

European stocks reversed early losses on Thursday as British Prime Minister Liz Truss resigned, giving her the shortest tenure in British history.

The pan European Stoxx 600 gained 0.3 percent. The German DAX inched up 0.2 percent, France's CAC 40 index climbed 0.8 percent and the U.K.'s FTSE 100 added 0.3 percent.

Back home, benchmark indexes Sensex and the Nifty finished modestly higher on Thursday, thanks to late session buying at select counters.