GIFT Nifty indicates positive-to-flat opening for Sensex, Nifty50

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Domestic markets are expected to open flat on Friday amid mixed global signals. US stocks closed in the green and most stocks in the Asia-Pacific region, except for the Japanese markets, also rose.

However, GIFT Nifty at 19,550 points to a positive open to flat for the benchmarks. Nifty futures contracts closed on the New York Stock Exchange on Thursday at 19,474.80.

Analysts expect higher earnings and stock action due to earnings season. Thanks to continued buying by foreign portfolio investors (FPIs), analysts expect the market to remain in the consolidation phase.

Siddhartha Kimka, Head of Retail Research at Motilal Oswal Financial Services said, “With the start of the Q1 FY23 earnings season, the market is likely to witness more equity specific action. In the near term, the market may remain in consolidation mode though The bottom layer remains positive on the back of strong inflows of foreign investment factor, strong macro and micro domestic factors and the expectation of normal monsoons.”

Shobhit Mathur, Senior Director, Kotak Cherry said, “The results season for the first quarter of the new financial year has started on a positive note. Al-Street expects the profits of Nifty companies to increase by nearly 25% year-on-year, with banks being the largest shareholder, followed by major pharmaceutical companies. The bulls in the IT sector (after the TCS results) dragged the Nifty 50 index to an all-time high. FII’s strong inflows and core strengths of the economy along with China’s substitution strategy are at the root of the market action we have seen over the past 30 days. Foreign investors have invested a total of $17 billion so far in the current fiscal year.”

Sensex up to 70,000

Some analysts are bullish given the strong domestic economic indicators and FPI inflows.

Vaibhav Kaushik, Research Analyst at GCL Broking said, “We are quite sure that Sensex can hit 70,000 very soon and even can cross that. Our target is 75,000 for this calendar year.” All significant components of Sensex are trading above average on the weekly charts. IT stocks are out performing right now. It will help faster movement of Sensex in the coming weeks.”

According to Sooraj Singh Gurjar, Founder and Managing Director of Get Together Finance, Sensex has shown good growth over the past few months and the infrastructure and PSU sector has played a huge role in this growth.

“Maintaining this growth momentum in both segments can drive Sensex to reach the 70,000 milestone.”

Experts also did not rule out profit-taking in the short term, given the sharp rise in a quick time.