Sensex, Nifty to open a tad higher on lower inflation; RIL, Godrej Ind, Mamaearth shares eyed

The Indian equity market is expected to open marginally higher on Thursday, tracking positive cues from Asian peers, as lower-than-expected domestic retail inflation eased concerns about potential monetary tightening by the Federal Reserve after hotter U.S. CPI print of 3% in January. The positive trend at Gift Nifty also indicates a gap-up start for Sensex and Nifty, with Gift Nifty futures trading 55.5 points, or 0.24%, higher at 23,114.50 level.

Investors are expected to react positively to CPI inflation for January, which moderated to a five-month low of 4.31% YoY, primarily due to easing food prices, especially for vegetables, pulses, and eggs. While the RBI’s rate-cut cycle started in February, market participants are expecting another 25 basis points cut in repo rate in next policy meeting.

On Wednesday, Indian benchmark indices continued their losing streak for the sixth straight session, albeit settled with marginal losses. In the highly volatile trade, the 30-share Sensex closed 122 points lower at 76,171, and the Nifty50 settled 26.5 points down at 23,045, amid value buying in the final hours of day’s trade. The broader market also settled marginally lower by 0.5% each, recovering from intraday losses. The BSE Sensex has lost 2,413 points in six trading day, while the NSE Nifty declined 694 points, which can be primarily attributed to significant selling by foreign institutional investors (FIIs), looming threat of a global trade war, rising U.S. bond yields, and weak corporate earnings.

On the earnings front, Hindalco, Afcons Infrastructure, Concord Biotech, ITI , KIOCL, Manappuram Finance, and many others are set to release their December quarter results today. On the other hand, Bharat Forge, Crompton Greaves, IIFL Finance, Godrej Industries, Muthoot Finance, Honasa Consumer, Natco Pharma, GE Power released their Q3 numbers post market hours yesterday.

U.S. stocks fall as higher inflation dampens rate cut hopes

In the overnight trade, Wall Street ended on a negative note after a rise in January inflation dampened hopes of interest rates by the Federal Reserve anytime soon. The hotter-than-expected U.S. CPI print of 3% (versus the Fed’s 2% target) may offer a cautionary note to President Donald Trump administration’s push for tariff hikes as it may add inflationary pressure on the economy. The S&P 500 ended 0.27% lower, the Dow Jones Industrial Average declined 0.50%, while the Nasdaq gained 0.03%. The higher inflation pushed U.S. bond yields higher, with the 10-year note hitting its highest level in over two weeks.

Asian stocks up after U.S. CPI data

The equity market in the Asia-Pacific region witnessed positive trading, with stocks in Hong Kong and Japan rising over 1% as concerns over higher-than-expected US inflation figures was eased by U.S. President Donald Trump’s Ukraine peace talks with Russia and improving prospect of China’s tech sector. Japan’s Nikkei 225 surged 1.3%, while South Korea’s KOSPI was up 0.9%. Hong Kong’s Hang Sang climbed 1.2%, while China’s Shanghai Composite and Taiwan’s Weighted stock index were trading flat.

Stocks to watch

Reliance Industries: The country’s most valued company has incorporated its subsidiary REC Sustainable Energy Solutions Pte in Singapore, to set up a global capability centre for consolidating research and development (R&D) activities.

Adani stocks: The group stocks will in focus after the power-to-port conglomerate reportedly signed around $330 million ($207 million) private credit loan for its coal port unit located in Australia’s Northern Queensland.

ONGC and NTPC Green: Both the PSUs through their joint ventures has acquired 100% stake in Bengaluru-based Ayana Renewable Power Private Ltd for Rs 19,500 crore..

Vodafone Idea:The Department of Telecommunications (DoT) has demanded a bank guarantee of Rs 6,090 crore from the cash strapped telecom operator.

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