Nifty 50 set for higher opening, tracing Asian markets

Pre-market update: Benchmark index Nifty 50 index is anticipated to open higher on Thursday, following the rebound in Asian markets. 

As of 8:00 am, GIFT Nifty was trading at 21,730, indicating an opening above Wednesday's close of 21,618.70.

Investors are keenly watching quarterly results and a key US inflation reading for insights into potential shifts in interest rates.

The MSCI's broadest index of Asia-Pacific shares, excluding Japan, recorded a 0.75 per cent gain, ending a seven-day decline. 

Wall Street closed higher in the previous session. Attention will focus on the performance of information technology (IT) stocks as Tata Consultancy Services and Infosys are set to report quarterly results post market hours, marking the commencement of the earnings season.

Despite expectations of subdued results due to weak spending by major US clients, forecasts will be closely scrutinised.

US inflation data, scheduled for later in the day, will be a key factor for investors. A soft print could strengthen expectations of a rate cut in March, making stocks, particularly in the IT sector, more appealing.

Investors are also awaiting domestic inflation data, due on Friday, with expectations that India's inflation rose in December but remained within the central bank's target range. 

Persistent inflation, driven by high food prices, may influence the Reserve Bank of India (RBI) to maintain an extended rate pause, impacting rate-sensitive sectors such as consumer, real estate, and auto.

Vinod Nair, head of research at Geojit Financial Services, highlighted that the release of US and Indian inflation data may provide near-term direction in the market.

Exchange data revealed that foreign institutional investors (FIIs) sold shares worth Rs 1,721 crore ($207.3 million) on Wednesday, while domestic investors (DIIs) net bought shares worth Rs 2,080 crore.

Major earnings announcements on Thursday include Tata Consultancy Services, Infosys, and HDFC Asset Management.

Stocks to watch 

Bank of India: State-owned bank posted 8.66 per cent year-on-year rise in total deposits in the December quarter, according to its business update.

Phoenix Mills: Company reported 30 per cent year-on-year growth in gross retail collections at Rs 700 crore in the third quarter of fiscal 2024.

CESC: Company received order from Uttar Pradesh Electricity Regulatory Commission for procurement of power for five years.

(With Reuters Inputs)