Sensex, Nifty likely to open flat; US inflation data, corporate earnings in focus

Stock market news: Nifty 50 index is poised for a steady start on Monday, aligning with Asian markets' cautious stance in anticipation of crucial US inflation figures and corporate earnings releases.

As of 8:02 am, GIFT Nifty traded at 21,762.50, indicating a near-flat opening for the NSE Nifty 50, closely mirroring its Friday close of 21,710.80 points.

“Markets may see a subdued opening in Monday trades owing to weakness in most of the Asian indices and the GIFT Nifty index. Intra-day, local indices could see a range-bound trend with a mixed bias as caution may prevail after the record-breaking rally in the past few weeks,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Tapse also said that futures traders are now pricing in a 62 per cent chance the Federal Reserve will cut interest rates by a quarter percentage point in March, down from 73 per cent one week ago. 

“However, the positive catalyst: combination of solid economic activity and falling inflation in the US is likely to be the market’s bullish narrative,” he added.

“Domestic investors would be keenly watching the CPI inflation and IIP data for December scheduled to be wired on January 12. From a technical perspective, Nifty’s immediate upside hurdles are at 21,836 mark, while the make-or-break support is at 21,477 mark,” Tapse said.

While MSCI's broadest index of Asia-Pacific shares outside Japan remained largely unchanged, retreating 2.5 per cent last week, the Nifty experienced a marginal 0.09 per cent decline amid sustained record levels, with investors scrutinising corporate reports for validation of valuations and insights into future US monetary policy.

Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, commented, "We expect markets to witness further consolidation before taking cues from the upcoming earnings season," noting healthy pre-quarterly business updates signaling potential continuity in earnings growth during the December quarter.

Foreign institutional investors displayed a net buying activity of shares worth Rs 1,697 crore (approximately $204 million) on Friday, while domestic investors net sold shares amounting to Rs 3,498 crore, as per exchange data.

Stocks to Watch

• Titan: The jeweler and watchmaker reported a significant 22 per cent revenue growth in the third quarter.
• Tata Steel: India's crude steel production registered a notable 6 per cent increase in the December quarter, according to data.
• Adani Wilmar, Marico: Consumer companies noted a revenue decline in the December quarter attributed to lower demand and selling prices.
• Life Insurance Corporation of India: The company received a tax demand notice for Rs 191 crore.