India's equity markets are expected to make a comeback on Thursday, following three straight days of losses, as foreign investors return to buying and the rupee bounces back. This shift in sentiment could be just what the Nifty 50 needs to regain its footing.
Market Outlook
The Nifty futures were trading at 25,871 points, indicating a flat opening for the benchmark index, which closed at 25,818.55 on Wednesday. Despite the recent losses, the market is poised for a potential rebound, driven by foreign investors who net bought shares worth 11.72 billion rupees on Wednesday, breaking an eight-session selling streak.
Key Drivers
The rupee's significant one-day gain, thanks to the Reserve Bank of India's intervention, has also contributed to the improved sentiment. However, investors are likely to remain cautious ahead of the US inflation data release, which will influence the Federal Reserve's interest rate decisions.
Global Market Trends
Asian markets have been under pressure, particularly due to the performance of tech stocks, as investors assess the outlook for artificial intelligence-related shares. The release of US inflation data will be closely watched, as it may impact the Federal Reserve's future interest rate action and, in turn, affect global market trends.
Stocks to Watch
- Asset management companies will be in focus, as India's markets regulator approves measures to increase transparency in the break-up of costs charged by mutual funds.
- Antony Waste Handling Cell has secured two contracts worth 13.3 billion rupees from Mumbai's municipal corporation.
- HCLTech has won a multi-year contract from Netherlands-based ASN Bank for digital transformation and enhancing customer experience.
Remember, this is a market perspective, not a prediction. It's essential to do your own research and consider multiple sources before making any investment decisions.