Indian markets are set for a lower open following mixed performances, while US and Asian stocks rally on easing US inflation signs and positive global cues, amid a busy earnings season and commodity market stability.
GIFT Nifty futures pointed to a softer start for Indian equities on Thursday, with the contract quoted at 24,432, suggesting the Nifty 50 could open lower after a mixed session a day earlier. Global cues were constructive overall, however, as US futures held firm in Asian trading and investors digested fresh signs that inflation in the US is easing.
Wall Street extended its recent run overnight after cooler inflation data pushed bond yields lower and reinforced expectations that the Federal Reserve will leave interest rates unchanged next month. The S&P 500 rose 0.7% to a record close, while the Nasdaq 100 climbed more than 1% to its highest level since late June. Bloomberg also reported that, by 9:02 a.m. Tokyo time, S&P 500 futures were broadly flat and Euro Stoxx 50 futures had edged higher.
Asian markets followed the lead from New York, with MSCI’s Asia Pacific index rising 0.4% as softer oil prices and weaker US inflation data supported hopes of steady policy from the Fed. South Korea’s Kospi led gains with a surge of nearly 3%, while Japan’s Topix advanced 0.4%. Hong Kong futures, by contrast, were down 0.6%, reflecting a more cautious tone in parts of the region.
Commodity markets were steadier. Spot gold edged up to $4,359.73 an ounce after falling more than 1% in the previous session, while silver, platinum and palladium were little changed. Crude also held its losses, with Brent trading near $87 a barrel and West Texas Intermediate around $81, as traders monitored tensions around the Strait of Hormuz alongside the prospect of a less aggressive US rate path.
Back home, Indian benchmarks closed mixed on Thursday, August 13. The Sensex finished at 78,079.96, up 0.15%, while the Nifty 50 ended at 24,395.85, down 0.16%. Metal and PSU bank shares were among the main drags, while realty and FMCG counters held up better.
The day ahead is likely to be driven not only by overseas cues but also by a heavy earnings calendar. Companies due to report include Ashok Leyland, Cochin Shipyard, NMDC, Voltas and Tube Investments of India, among many others. After market hours, a long list of results showed a sharp split in corporate performance, with Honasa Consumer, Rashtriya Chemicals & Fertilizers, Welspun Living, Technocraft Industries and Genus Power Infrastructures posting profit growth, while Tata Motors passenger vehicles, Axiscades Technologies, Premier Explosives and Dreamfolks Services reported weaker numbers or losses.
Among stocks in focus, Oswal Pumps won a Rs. 78 crore order from North Bihar Power Distribution Company for rooftop solar projects, while RCF approved fundraising of up to Rs. 1,100 crore through non-convertible debentures. Aditya Birla Real Estate’s Birla Estates has also moved into Navi Mumbai redevelopment with a Vashi project that it says could generate about Rs. 2,600 crore in revenue, and several other companies announced board actions, restructurings and capital-raising plans that could keep individual stocks active.
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