Sensex, Nifty likely to open lower on weak global cues
Gift Nifty at 22,190 indicates that domestic market to open on flat-to-negative note on Thursday. Analysts expect the negative trend to continue for a few more days due to lack of domestic triggers. Escalating tensions in West Asia has turned sentiments sour, leading to a rise in crude oil prices.
“A mixed set of economic data from China further dampened the sentiments. Although better-than-expected China’s GDP number at 5.3 per cent came in as a surprise, poor March activity data offset any positivity,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
“Weak global cues and ₹11295 crore selling by FIIs in the last two days hurt domestic markets. In the near-term, we expect the market to remain volatile until the Iran-Israel tension eases. US Chair Powell’s speech late today will hold importance with the ongoing uncertain environment,” he added.
With TCS announcing better-than-expected results, the focus now shifts to result season. Prominent companies such as Accelya Solutions, Bajaj Auto, Eimco Elecon, HDFC Life Insurance, Infosys, ICICI Securities, Mastek, Network18, Orient Hotels, Reliance Industrial Infrastructure, Sharda Motor, Swaraj Engines and TV18 Broadcast will declare results.
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Ruchit Jain, Lead Research, 5paisa.com, said, “From the recent high of 22,768, Nifty has seen a sharp correction in last one week mainly because of negative global news flows leading to unwinding of long positions.”
“Also, the market breadth turned positive in Tuesday’s session. Nifty Small Cap index is relatively outperforming in this corrective phase, indicating strength in broader markets. Hence, trading with a stock specific approach could be a better trading strategy for the near-term,” he added.
Rahul Kalantri, VP-Commodities, Mehta Equities, said, “The dollar index showed very high volatility and extended its gains amid heightened tensions in West Asia. The Japanese Yen also slipped to record lows and also supported the dollar index.”
Meanwhile, ITI Asset Management Company Ltd said that Indian markets will see a multi-year bull cycle owing to the confluence of macro and micro tailwinds, with 7 per cent GDP growth, moderating inflation prints, range-bound crude prices, easing 10-year G-sec yield, stable currency, and resilient corporate earnings leading the path.
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Sectors like general insurance, life insurance, telecom, domestic and global pharma, power and power finance companies and defence will have multi-year growth opportunities in front of them, it said.
It further said, “The recovery in the consumer staples, excluding the discretionary segment, is weak and elusive at this point of time, but food delivery and quick commerce companies may do well as they are an emerging business, although profitability needs to be factored in.”
“For sustained valuations and market growth, earnings growth trajectory, capex, policy initiatives like PLI, etc., Lok Sabha election outcome, and the timing and quantum of interest rate easing globally will be closely monitored,” it highlighted as key factors.