Nifty, Sensex poised for flat-to-bearish opening on final session of fiscal 2024

Stock market news: Benchmark indices, NSE Nifty 50 and S&P BSE Sensex gear up for what appears to be a relatively unchanged start on the closing trading day of fiscal year 2024. Following the cues from Asian counterparts, market participants brace for potential volatility amid the monthly derivatives expiry.

The GIFT Nifty stood steady at 22,177 as of 8:20 am on Thursday, hinting that the blue-chip NSE Nifty 50 may commence trading near Wednesday's closing figure of 22,123.65.

Bolstered by the performance of heavyweight Reliance Industries, India's benchmark indexes, Nifty and BSE Sensex, witnessed gains in the preceding session.

Nifty 50, which surged by an impressive 27.44 per cent in fiscal 2024, is poised to deliver its strongest performance since FY2021 and its second-best in the past 14 years. This upward trajectory owes much to robust macroeconomic fundamentals, sustained inflows from domestic mutual fund investors, and the resurgence of foreign portfolio investors after a two-year hiatus.

Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, remarks, "With monthly derivatives expiry and financial year-end, volatility will likely be elevated."

Having peaked at a 10-month high of 16.58 ahead of the interim budget on February 1, the volatility index India VIX has moderated to 12.70.

Meanwhile, Asian markets exhibit slight fluctuations, with the MSCI dipping marginally by 0.02 per cent.

In the backdrop of Wall Street's upward trajectory overnight, anticipation builds for a key inflation reading later in the week.

The recent surge in US inflation figures initially stoked concerns about potential delays in interest rate cuts. However, reassurances from the Federal Reserve's commentary during the policy meeting earlier this month, maintaining projections of three rate cuts this year, assuaged market apprehensions.

While markets anticipate a US rate cut in June, the timing could be influenced by the forthcoming inflation data on Friday.

In Wednesday's trading, foreign portfolio investors displayed robust activity, acquiring Indian shares worth Rs 2,170 crore on a net basis, while domestic institutional investors contributed to the momentum by purchasing a net Rs 1,198 crore worth of stocks.

Stocks to watch

• BHEL: Secured a significant order worth Rs 4,000 crore from Adani Power for the establishment of a thermal power plant in Chhattisgarh.
• Ultratech Cement: Successfully commissioned additional production capacity of 2.4 Mtpa across four units.
• Zydus Lifesciences: Underwent an inspection by the US drug regulator at its manufacturing plant in Ahmedabad, concluding with four observations.
• Cyient: Announced a strategic partnership with German original equipment maker Deutsche Aircraft for the design of the rear fuselage section of one of its aircraft.