Indian markets set for weak open as Asian peers struggle with bond yield surge

Futures contracts on India's Nifty50 index were trading lower by around 100 points on Friday morning, signalling a softer start for domestic markets. The decline mirrors broader weakness across Asian exchanges, where investors have grown increasingly cautious amid a combination of macroeconomic headwinds.

Rising bond yields have emerged as a key concern for equity investors across Asia, reflecting expectations of sustained higher interest rates in major economies. Elevated crude oil prices have compounded the selling pressure, with energy costs remaining a potential drag on corporate profitability and inflation dynamics throughout the region.

The combination of factors has dented risk appetite among market participants, prompting a rotation away from equities toward safer assets. Asian bourses have reflected this shift in sentiment, with multiple indices posting declines as traders reassess valuations in light of the challenging macroeconomic backdrop.

Indian market participants will be watching for cues from global developments and domestic economic data releases that could influence the trajectory of equities in the session ahead. The opening levels on Friday will offer the first indication of how domestic investors respond to overnight international market movements and the prevailing risk environment.