Indian Equities Tread Cautiously Amid Rising US Yield

The Indian equity market is expected to open cautiously on Monday, with the GIFT Nifty trading 23 points lower than its previous close. The US Treasury yield remains near 5%, which could continue to pressure global markets. Asian markets were mostly positive, with South Korea's Kospi rising by 0.85% and Australia's S&P/ASX 200 declining by 0.49%. Brent crude futures fell by 2.10% to $101.69 a barrel, while US crude dropped by 1.93% at $98.36 a barrel.

The 10-year US Treasury yield has been hovering near 5%, which may continue to impact global markets. In the US, equity futures pointed to a mildly positive opening, with S&P 500 futures up 0.23%, Nasdaq-100 futures gaining 0.27%, and Dow futures rising 0.25%. The US Dollar Index (DXY) was trading at 100.24, which measures the dollar's value against a basket of six foreign currencies.

Indian investors will also be monitoring domestic institutional investor flows, as both FII/FPIs and DIIs were net buyers on September 18. The infrastructure sector gained 3.79% in the last trading session, followed by electronics at 3.44%, and petrochemicals at 2.81%. However, the Nagarjuna Group fell by 2.25%, followed by the CK Birla Group at 2.06%, and the Tata Group at 2.03%.