According to the Clearing Corporation of India’s (CCIL) data, FPI investment in G-sec under FAR route increased to Rs 3.01 lakh crore in this week, as compared to Rs 2.99 lakh crore last week.
Meanwhile, cryptocurrencies climbed amid signs that the U.S. Securities and Exchange Commission (SEC) may approve a spot ether exchange-traded fund
Spot gold was up 1% at $2,307.88 per ounce as of 10:06 a.m. ET (1406 GMT), after hitting its lowest level since April 5 earlier in the session
The three major U.S. stock indexes pared initial gains and the Nasdaq turned slightly negative after Friday's steep sell-off, while the yen fell to its lowest level since 1990, reviving intervention fears.
The Institute for Supply Management (ISM) said on Friday that its manufacturing PMI fell to 47.8 last month from 49.1 in January. It was the 16th straight month that the PMI remained below 50, which indicates contraction in manufacturing.
Retreating oil prices, treasury yields, and dollar rates will make foreign institutional investors return to Indian markets, Mark Matthews, head of research-Asia, Juluis Baer Group, has said
Oil prices slipped after a rise in U.S. crude stockpiles and due to the stronger dollar, though the war in the Middle East loomed large in traders’ minds.
Dangi anticipates an income slowdown in the Indian economy due to high interest rates, and surging crude prices, which will impact the consumption capacity of the retail household.
The MSCI All Country stock index climbed 0.4% in a second straight session of gains - pulling further away from Friday's 2-1/2 month trough.
Spot gold was up 0.2% at $1,893.10 per ounce by 1208 GMT, after touching its lowest in five months on Thursday. U.S. gold futures rose 0.4% to $1,923.00.
Benchmark 10-year yields reached 4.312% in trading Thursday and tested October's 4.338%, and a surge beyond would see the highest yields since 2007.
The difference between benchmark US and Indian securities narrowed to 3.53 percent on May 8 from 3.96 percent on April 6.
Global equities fell while U.S. Treasury yields rose on Thursday as investors weighed hawkish commentary from Federal Reserve Chairman Jerome Powell on the prospects of further interest rate hikes targeted at reining in inflation.
The Dow Jones Industrial Average fell 51.89 points, or 0.16%, to 32,674.93, the S&P 500 lost 9.27 points, or 0.22%, to 4,142.67 and the Nasdaq Composite dropped 32.77 points, or 0.26%, to 12,687.81.
Spot gold was up 0.4% at $1,778.69 per ounce, as of 0044 GMT, its highest since July 5.
In bond markets, two-year Treasury yields fell further on Thursday after it dipped under 3% on Wednesday after the Fed meeting.
The US consumer price index rose 0.9% in October after gaining 0.4% in September, accelerating 6.2% in the 12 months through October, the largest year-on-year advance since November 1990.
Volatility in the foreign exchange and the interest rate markets has increased during the week as they tried to digest central bank actions and economic reports.
Concerns that the peak of the economic growth rebound might have passed loomed large, fuelled by concerns over the spread of the Delta virus variant as well as supply chain issues.
With tapering expectations gaining traction, the dollar extended its gains made on Friday and Monday.
Investors have been nervous about riskier assets ahead of the release Wednesday of the June policy minutes, expected to show how serious members are about tapering their asset buying and how early rate hikes could begin.
Focus is on an auction of US 10-year and 30-year debt later in the day for clues to where yields in the recently volatile market may be headed.
The gap between 10-year and two-year US yields also reached its widest in nearly three years in anticipation of short-term rates going nowhere.
"Brexit is going to dominate the market if it looks as if they are going to leave," said Quincy Krosby, market strategist at Prudential Financial. "If it looks like they're going to stay, Yellen will dominate the market.
The rupee resumed lower at 64.20 per dollar against the yesterday's closing level of 64.17 at the Interbank Foreign Exchange (Forex) Market, but immediately recovered to 64.05 on the back of firm equity market.