Indian Stock Benchmarks Expected to Open Muted After Three Consecutive Days of Losses
India’s key equity benchmarks are anticipated to open flat on Thursday, following three days of declines. Market sentiment is likely to be supported by renewed buying from foreign investors and a rebound in the Indian rupee, which had previously hit record lows.
As of 7:35 a.m. IST, Nifty futures were trading near 25,871 points, indicating a modest opening close to the previous session’s Nifty 50 close of 25,818.55. The benchmark indexes had fallen around 0.9% over the last three trading sessions amid investor concerns over foreign capital outflows and the rupee’s depreciation. The currency’s weakness was partly attributed to delays in progressing the India-U.S. trade deal.
However, a shift in foreign investment trends was observed on Wednesday when foreign investors ended an eight-session selling streak by purchasing shares valued at approximately 11.72 billion rupees (about $129.53 million), according to provisional data. In addition, the rupee recorded its best single-day gain in two months after active intervention by the Reserve Bank of India to stabilize the currency.
Globally, investors remain cautious ahead of the U.S. inflation data scheduled for release on Thursday. This key economic indicator is expected to influence the Federal Reserve’s decisions regarding future interest rate adjustments. Meanwhile, Asian markets experienced declines, pressured primarily by technology stocks amid uncertainties over the outlook for artificial intelligence-related companies.
Stocks to Watch:
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Asset management companies have come into focus as India’s market regulator approved measures to enhance transparency in the cost structure of mutual funds, requiring clearer disclosure of fee breakups to investors.
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Antony Waste Handling Cell (AWHCL) secured two contracts worth a combined 13.3 billion rupees from the Mumbai Municipal Corporation, signaling new business opportunities in waste management services.
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HCL Technologies (HCLTECH) won a multi-year contract from ASN Bank, based in the Netherlands, to lead its digital transformation efforts and improve customer experience.
Currency and Exchange Rates:
At present, the exchange rate stands near 90.40 Indian rupees to the U.S. dollar, reflecting recent volatility and intervention efforts.
Looking Ahead:
Market participants will continue to monitor developments on trade negotiations and the global economic environment closely. The upcoming U.S. inflation report is expected to be a key influence on worldwide equity markets, including those in India.
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