Domestic shares set to open higher taking cues from Asian peers

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Domestic markets are set to open higher on Tuesday, tracking gains in broader Asian peers, while investors await the domestic and US inflation prints.

The GIFT Nifty was trading at 22,452 as of 0752 a.m. IST, indicating that the Nifty 50 will open above Monday’s close of 22,332.65.

Asian markets opened higher, with the MSCI Asia ex-Japan index adding 0.23%. Most Wall Street equities had declined overnight ahead of US consumer price index (CPI) inflation data, which is due after closing bell.

The CPI is expected to have risen 0.4% in February on a monthly basis, and could heavily influence the timing of the Federal Reserve’s rate cuts.

While traders have ruled out a rate cut in the Fed’s upcoming policy meeting on March 20, they see a 55.2% probability of a 25 basis points cut in June, according to CME’s FedWatch Tool.

Investors also await India’s CPI data, which is forecast to have edged down to a four-month low in February on moderating food price rises, according to a Reuters poll of economists. The data is also due after market hours.

The Nifty 50 and BSE Sensex fell 0.7% each on Monday, weighed by losses in banking and Tata Group stocks, and profit-booking at near record high levels.

Small-caps underperformed the blue-chips, dropping 2%, with the markets regulator flagging froth in the small- and mid-caps segments.

Both foreign portfolio investors and domestic institutional investors were net buyers of Indian equities on Monday, adding shares worth Rs 4,213 crore (~$509 million) and Rs 3,238 crore, respectively.

Stocks to watch

ITC: British American Tobacco said it is evaluating a possible disposal of a small part of its shareholding in ITC.

Aditya Birla Capital: Company said it will merge with its unit Aditya Birla Finance and turn into an operating non-banking financial company from a holding company.

Interglobe Aviation: Co-founder Rakesh Gangwal sold a 5.8% stake worth $820.3 million in the company, via bulk deals.

Jupiter Wagons: Company received a contract worth Rs 957 crore rupees from Ministry of Railways for manufacturing and supply of BOSM Wagons. ($1 = 82.7540 Indian rupees)