The Indian equity benchmarks are set to open on a weak note on Thursday, ahead of weekly expiry of Nifty futures and option contracts, as indicated by Nifty futures traded on GIFT Nifty. GIFT Nifty futures on IFSC in Gandhinagar fell 26 points or 0.13 per cent to 21,143 amid weak cues from other Asian markets.

Asian markets witnessed a decline on Thursday following the end of a prolonged winning streak on Wall Street. Treasury yields hovered around five-month lows, influenced by optimistic expectations that the soft inflation observed in Britain would be mirrored in upcoming US inflation data.

The recent surge in equities, fuelled by decreasing interest rates and the Federal Reserve’s more accommodative stance, came to a halt on Thursday. Despite initially positive US economic data that exceeded expectations, the major indexes turned downward. The unexpected significant drop in British inflation also caught markets off guard.

MSCI’s broadest index of Asia-Pacific shares outside Japan witnessed 0.6 per cent decline, following the sharp drop in US stocks in the previous session. While the index has seen a 1.7 per cent increase this month, Australian shares were down by 0.4 per cent, and Japan’s Nikkei stock index witnessed a 1.49 per cent slide.

US stock futures, specifically the S&P 500 e-minis, showed a 0.17 per cent increase, suggesting a cautious optimism among investors despite the recent market fluctuations.

Back home, foreign institutional investors (FIIs) sold shares worth Rs 1,322 crore on Wednesday while domestic institutional investors bought shares worth Rs 4,754 crore.

Mazagon Dock will be in focus after it received orders worth Rs 1,615 crore from Defence Ministry for construction of six next generation offshore patrol vessels for Indian Coast Guard.

Cochin Shipyard will also be in focus after it also got an order from Defence Ministry to repair and maintain equipment and systems on a naval vessel.