Updated January 19th, 2024 at 10:08 IST
Nifty 50 set for higher opening after three-day decline
Wall Street closed higher overnight, supported by labour market data indicating the lowest level of initial claims for unemployment benefits since September 202
Nifty to open higher: The Nifty 50 index is anticipated to open higher on Friday, signalling a rebound after a three-day losing streak.
Tracking positive trends in Asian markets, the optimism is fuelled by data supporting the expectation of a soft landing for the US economy.
As of 8:24 am, India's GIFT Nifty was trading at 21,588.50, suggesting an opening above Thursday's closing level of 21,462.25 for the NSE Nifty 50.
Both the Nifty 50 and the Sensex have experienced a 3 per cent drop from Tuesday's record highs, driven by concerns over HDFC Bank's weak December-quarter margins and uncertainties about early US rate cuts.
For the week, both blue-chip indexes have lost nearly 2 per cent, potentially marking their worst weekly performance since the end of October. Investor sentiment has been impacted by subdued results and guidance from key corporates, along with concerns about potential delays in US rate cuts.
Wall Street closed higher overnight, supported by labour market data indicating the lowest level of initial claims for unemployment benefits since September 2022.
While this data underscores the resilience of the US economy and aligns with expectations of a soft landing, it also raises doubts about a potential rate cut in the Federal Reserve's March meeting.
Asian markets opened higher, contributing to the positive outlook for the Nifty 50. Investors are now focusing on the results of Nifty 50 constituents Reliance Industries and Ultratech Cement, expected on Friday.
Foreign institutional investors (FIIs) were net sellers of shares worth Rs 9,902 crore ($1.19 billion) on Thursday, while domestic institutional investors (DIIs) bought shares worth Rs 5,977 crore.
Stocks to watch
NHPC: Company decided to exercise oversubscription option of its offer for sale (OFS), increasing to up to 1 per cent in addition to base offer size of 2.5 per cent, on Friday.
IndusInd Bank: Private lender beat third-quarter profit expectations, helped by strong loan growth.
Shoppers Stop: Company posted third straight fall in quarterly profit, as consumers spent less on clothes and cosmetics amid elevated prices.
Poonawalla Fincorp: Non-bank lender reported 76.3 per cent year-on-year growth in net profit in December quarter.
(With Reuters Inputs)
Published January 19th, 2024 at 08:56 IST