BENGALURU: India’s benchmark Nifty 50 index is set to open higher on Thursday, tracking a rebound in Asian peers, with investors awaiting quarterly results and a key US inflation reading for cues on interest rates.
India’s GIFT Nifty was trading at 21,730 as of 8:00 a.m. IST, suggesting the NSE Nifty 50 will open above its close of 21,618.70 on Wednesday.
The MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.75%, after falling for seven consecutive sessions. Wall Street equities closed higher overnight.
Information technology stocks will be in focus as market leaders Tata Consultancy Services and Infosys are due to report quarterly results post market hours, kicking off the earnings season in earnest.
While their results are expected to be subdued due to weak spending by key US clients, the forecasts will be in focus.
US inflation data, due later in the day, will also be on investors’ radar.
A soft print will likely fortify bets of a rate cut in March, making stocks, and IT stocks in particular, attractive.
Indian shares rise on boost from IT, Adani group stocks
Investors will also look to domestic inflation print, due on Friday. India’s inflation likely rose in December but remained within the central bank’s target range, the data is expected to show.
Elevated inflation due to high food prices could keep the Reserve Bank on India on an extended rate pause and weigh on rate-sensitive sectors like consumer, real estate, and auto.
“The release of US and Indian inflation data may provide a near-term direction in the market,” said Vinod Nair, head of research at Geojit Financial Services.
Foreign institutional investors net sold shares worth 17.21 billion rupees ($207.3 million) on Wednesday, while domestic investors net bought 20.80 billion rupees of shares, according to exchange data.
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