Nifty, Sensex poised for higher open after Fed decision, drop in oil prices

Stock market news: The Indian stock market is anticipated to start the day on a positive note on Thursday, buoyed by the US Federal Reserve's decision to leave interest rates untouched, hinting at potential delays in rate cuts. Additionally, a decline in oil prices and robust domestic auto sales figures are expected to further bolster investor sentiment.

As of 08:00 am, GIFT Nifty was trading at 22,744, indicating a probable opening above Tuesday's closing figure of 22,604.85 for the Nifty 50.

The Federal Reserve's announcement late Wednesday indicated a slower pace of interest rate cuts than previously anticipated. Madhavi Arora, lead economist at Emkay Global, noted, "No Fed cuts in 2024, followed by shallow cut cycle is turning into a reality," expressing confidence in the resilience of emerging market risk assets.

The performance of the Nifty auto index will be closely watched following reports of increased car sales by industry leaders in March.

Global oil prices experienced a dip to a near-seven-week low overnight, a trend that typically eases inflation expectations in India, the world's third-largest importer and consumer of oil.

Market attention will also be directed toward the quarterly results from Adani group entities such as Adani Enterprises and Adani Ports, scheduled for later in the day.

Indian markets were closed on Wednesday for a holiday following a downturn on Tuesday, marked by profit booking towards the closing bell.  Profit booking ensued towards the closing bell on Tuesday, after a sharp rally in the last couple of days and a holiday-led truncated week, said Vinod Nair, head of research, Geojit Financial Services.

Foreign institutional investors continued their buying spree for a second consecutive session on Tuesday, acquiring shares worth 10.72 billion rupees ($128.5 million), while domestic institutional investors purchased shares worth 14.29 billion rupees on a net basis.

Stocks to watch

• Jindal Stainless: The company announced on Wednesday its intention to invest nearly 54 billion rupees ($646.6 million) for acquisitions and capacity expansion.
• Adani Wilmar and Adani Power: Both entities reported an increase in their fourth-quarter profits on Wednesday.
• Godrej Industries, Godrej Properties, Godrej Consumer: The Godrej family disclosed ownership realignment of shareholdings in Godrej companies.
• Kotak Mahindra Bank: The private lender announced the resignation of its joint managing director KVS Manian on Tuesday, after two months in the role.

Key Earnings Reports: Adani Ports, Adani Enterprises, Coal India, Coforge