India equity benchmarks to open higher on foreign inflow prospects; IT in focus
Indian benchmark shares are likely to open higher on Thursday on hopes of renewed foreign investor buying amid reasonable equity valuations, with a focus on information technology stocks ahead of sector major Tata Consultancy Services' quarterly results.
Gift Nifty futures were trading at 25,150.5 points as of 7:49 a.m. IST, indicating that the benchmark Nifty 50 will open above Wednesday's close of 25,046.15.
Foreign portfolio investors snapped their 10-day selling streak earlier this week, turning net buyers on Wednesday and Thursday. They bought Indian shares worth 14.49 billion rupees ($163.37 million) and 812.8 million rupees, respectively.
A drop in crude oil prices following Israel and Hamas agreeing to the first phase of a plan to end the war in Gaza could also support equities.
"The short-term trend for market remains neutral to mildly positive as long as Nifty holds above 25,000 points," said Ponmudi R, CEO of Enrich Money.
Investors will closely watch the IT sector, as India's No.1 IT company TCS and Tata Elxsi will report their September quarter earnings on the day.
The IT index has risen 4.7% cumulatively in four out of the last five trading sessions.
Meanwhile, U.S. and Europe's major equity indexes hit record highs on Wednesday, boosted by prospects of a rate cut by the U.S. Federal Reserve at its meeting later this month. The MSCI's broadest index for Asia-Pacific stocks outside Japan was marginally up 0.1%.
STOCKS TO WATCH
** Drugmaker Lupin announces plans to set up a new pharmaceutical plant in U.S. with a projected investment of $250 million over five years
** Prestige Estates Projects reports 50% growth in second-quarter sales, with strong growth in key geographies like Bengaluru and Mumbai
** Senco Gold posts 6.5% growth in total revenue for the September quarter, and says the ongoing quarter is poised to be the strongest for jewellery industry amid major festivals.
($1 = 88.6960 Indian rupees)
