Nifty, Sensex poised to start higher on US inflation moderation

Stock market news: Benchmark indices, NSE Nifty 50 and S&P BSE Sensex, are expected to open higher on Monday, April 1, taking cues from Asian markets, following a moderation in a key US inflation reading that has raised expectations of a Federal Reserve rate cut in June.

The Gift Nifty was trading at 22,533 as of 8:00 am, indicating that the blue-chip NSE Nifty 50 will open above Thursday's close of 22,326.90.

Asian markets opened marginally higher, with the MSCI Asia ex-Japan index adding 0.2 per cent, after data showed US inflation eased in February.

Federal Reserve Chair Jerome Powell commented on Friday, stating that the latest inflation reading was in line with the central bank's expectations.

Indian shares wrapped up fiscal year 2024 with gains, buoyed by robust macroeconomic fundamentals and strong fund inflows. The benchmark Nifty 50 rose approximately 29 per cent, while the BSE Sensex added 25 per cent in the financial year that ended on March 31.

"We expect the bullish trend in Indian markets to continue in fiscal year 2025," remarked Rakeshh Mehta, chairman of Mehta Equities.

Mehta further expressed confidence in the market's outlook, citing strong participation from domestic investors and the return of foreign investors.

Foreign portfolio investors reversed their trend, becoming buyers in Indian equities after selling over the previous two financial years. Meanwhile, domestic mutual fund investors maintained their streak of purchasing domestic equities for 36 consecutive months.

According to provisional data from the National Stock Exchange, overseas investors bought Rs 188 crore (approximately $22.6 million) of shares on a net basis on Thursday, while domestic institutional investors purchased shares worth Rs 2,692 crore.

Stocks to watch

• Hindustan Aeronautics: The company signed a contract worth Rs 1,173 crore for the supply of gas turbines.
• HG Infra Engineering: The company received a letter of award for a project worth Rs 220 crore from Jodhpur Vidyut Vitram Nigam.
• Karnataka Bank: The lender signed a pact with ICICI Lombard (ICIL.NS) to distribute their general insurance products.
• Rail Vikas Nigam: The company's joint venture with Salasar Techno Engineering emerged as the lowest bidder for a project worth $7.2 million from Energy Development Corporation.