Nifty, Sensex poised for higher open amid global momentum

Stock market news: Indian benchmarks are set to open higher on Tuesday,bolstered by robust performances in metal stocks amidst a surge in global prices and strong domestic earnings reports.

As of 8:45 am, GIFT Nifty was indicating a bullish start at 22,797, suggesting that the Nifty 50 will commence above its previous close of 22,643.40.

Monday witnessed a wave of better-than-anticipated quarterly results from prominent Nifty 50 constituents such as ICICI Bank and UltraTech Cements, injecting optimism into the benchmarks.

Deepak Jasani, head of retail research at HDFC Securities, remarked that the buoyancy in corporate earnings has managed to overshadow apprehensions surrounding potentially prolonged elevated interest rates, particularly in light of the impending US Federal Reserve policy meeting.

Analysts foresee a sustained rally in metal stocks, propelled by a continued surge in global prices, primarily driven by supply constraints. MET/L

In sync with this momentum, Asian shares inched upwards, while Wall Street concluded on a positive note overnight, with investors closely monitoring the Fed's interest rate stance. MKTS/GLOB

Market sentiment suggests a 97.3 per centprobability of the Fed maintaining its rates in May 2024, according to the CME FedWatch tool, reflecting a notable uptick from 90.7 per centrecorded at the end of March.

Continuing a trend, foreign institutional investors divested Indian shares for the sixth consecutive session on Monday, offloading stocks valued at Rs 169 crore ($20.3 million), whereas domestic institutional investors net purchased shares worth Rs 692 crore.

Stocks to watch:

• PNB Housing Finance, which reported a substantial surge in fourth-quarter profit fueled by sustained demand for home loans and a reduction in non-performing assets.
• Apparel retailer Trent , which also registered an uptick in quarterly profit, buoyed by the expansion of its lower-priced Zudio brand stores.
• Key earnings announcements expected from Adani Total Gas, Exide Industries, and Indian Oil.