Indian shares are expected to open lower on Thursday amid global cues, MSCI index adjustments, and a busy earnings calendar, with investors weighing inflows and outflows driven by index reshuffles.
Indian shares are set for a softer start on Thursday, with the Sensex and Nifty pointing lower as investors weigh mixed global cues, changes to the MSCI index, institutional flows and a busy run of quarterly earnings, according to NDTV Profit. The GIFT Nifty was down 116.5 points at 24,424, a sign of a weak opening for domestic stocks. The Sensex is the BSE’s 30-share benchmark and the Nifty 50 tracks 50 of the largest and most liquid companies on the National Stock Exchange, making the pair the main gauges of market sentiment in India, according to Moneycontrol.
The latest MSCI rejig is likely to be one of the main stock-specific drivers. MSCI said Laurus Labs, Lenskart, Adani Energy Solutions and Groww have been added to its standard index, while Balkrishna Industries, SBI Cards and Astral were removed. NDTV Profit reported that India’s index weight will edge up to 11.9% from 11.8%, with the number of constituents rising to 166 from 165. Nuvama estimated the changes could bring in $1.52 billion in inflows, led by Laurus Labs, while the exclusions may trigger about $450 million in combined outflows.
Overnight cues from abroad were mixed but broadly constructive in Asia. Reuters reported that South Korea’s Kospi jumped 3.13% and Japan’s Nikkei 225 gained 1.5%, while Australia’s S&P/ASX 200 slipped 0.6%. In the US, futures were little changed as traders awaited fresh inflation data and digested another round of earnings, according to CNBC. Investors are now focused on July producer price figures due later on Thursday, after consumer prices rose 0.1% in July, in line with expectations, easing some fears of more aggressive near-term rate rises.
Back home, the earnings calendar remains busy. NDTV Profit said Solar Industries, Max Healthcare, Tata Motors Passenger Vehicles, LG Electronics, Ipca Labs, ITI and Endurance Technologies are among the companies due to report quarterly results. With crude oil movements, foreign and domestic institutional activity and the MSCI reshuffle all in play, trading is likely to stay driven by stock-specific flows rather than broad market conviction.
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