Indian share market is expected to open higher on Thursday, tracking positive cues from global peers. The firm trend at Gift Nifty also indicates a gap-up start for Sensex and Nifty, with Gift Nifty futures trading 65.5 points, or 0.28%, higher at 23,816 mark.

In absence of any major global developments, domestic events such as the RBI MPC outcome and Delhi state election results will be key trigger for the market. Additionally, global factors such as the ongoing trade war amid U.S. President Donald Trump's tariff plans may add an element of uncertainty in the equity markets. Meanwhile, the domestic bourses are expected to benefit from moderation in U.S. bond yields and lower crude oil prices, while the rupee's depreciation could cap upmove.

AI-linked stocks propel U.S. stocks higher  

In the overnight trade, U.S. stocks closed higher, driven by rally in AI-linked companies such as Arm, Broadcom and Nvidia amid resurgent optimism about artificial intelligence. On the other hand, slump in Google parent Alphabet and semiconductor heavyweight AMD shares post disappointing earnings capped upmove. At the close, the Dow Jones Industrial Average was up 0.71%, the S&P 500 gained 0.39%, and the Nasdaq Composite added 0.19%.

Asian stocks follow Wall Street higher

Markets in Asia-Pacific region started the day on positive note, tracking firm cues from Wall Street, with shares in Australia, Japan and South Korea leading the gains. The stocks in mainland China, which opened after a long Lunar New Year holidays, and Hong Kong witnessed choppy trade amid uncertainty about U.S.-China relations. Japan’s Nikkei 225 rose 0.15%, South Korea’s KOSPI surged 0.74%, while Australia’s ASX 200 ended 1% higher. Hong Kong’s Hang Sang was down nearly 0.2%, while China’s Shanghai Composite was up 0.15%, and Taiwan’s Weighted stock index climbed 0.3%.

Domestic markets end lower in choppy trade

On Wednesday, Indian equities traded within a narrow range and ended the session in negative terrain. Amidst lingering global uncertainties stemming from the tariff war, investors turned cautious ahead of the RBI monetary policy outcome, with the Street anticipating a minimum of 25 bps cut in repo rate.

The 30-share Sensex ended lower by 312.5 points, or 0.40%, to settle at 78,271, while the Nifty50 closed down by 43 points, or 0.18%, at 23,696 level. Outperforming the benchmark indices, the broader market settled on solid note, with the Nifty Smallcap100 and Midcap100 indices rising 1.85% and 0.68%, respectively. 

Among individual stocks, Asian Paints, Titan Company, Nestle India, Britannia Industries, and Tata Consumer were among top losers, while ONGC, Hindalco, Apollo Hospitals, and BPCL topped the gainers chart.

Technical outlook

Technically, the market moved in a narrow range and witnessed intraday selling pressure at higher levels on Wednesday. A small bearish candle formation on the daily charts and lackluster intraday activity indicate the continuation of non-directional momentum in the near future.

The current market texture is non-directional; hence, levels-based trading would be the ideal strategy for day traders, says Shrikant Chouhan, Head Equity Research, Kotak Securities. “On the downside, 23600/78000 and 23500/77700 would be the key support zones for Nifty and Sensex, while 23800-23900/78700-78900 could act as crucial resistance areas for traders. However, below 23500, /77700 traders may prefer to exit their long positions.”

Stocks to watch

Investors will keep an eye on shares of big players such as State Bank of India, Hero MotoCorp, Bharti Airtel, Britannia, and Trent as they will announce their Q3 results today.

UltraTech Cement: The Aditya Birla group company plans to commission an additional 0.6 MTPA grinding capacity at its existing unit situated at Sonar Bangla, West Bengal.

Swiggy: The online food delivery company has reported 39% YoY rise in its net loss at ₹799 crore.

Saraswati Saree Depot: The recently listed company has informed exchanges that its board will consider and approve an interim dividend on equity shares for FY25-26 on February 13.

Info Edge: The company has committed a contribution of up to ₹1,000 crore via its wholly owned subsidiaries in a scheme to be launched by Karkardooma Trust, a Category II AIF.

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