Indian equities are anticipated to start on a positive note on October 7, 2024, following five consecutive sessions of losses. This shift in sentiment is largely attributed to robust employment data from the United States, which has alleviated concerns about a potential economic downturn in the world's largest economy.
As of 7:50 a.m. IST, the GIFT Nifty was trading at 25,253 points, suggesting that the NSE Nifty 50 will likely open above its previous close of 25,014.6. This indicator is closely watched by market participants as it often provides insights into the expected performance of the broader Indian stock market.
The previous week saw both the Nifty 50 and the S&P BSE Sensex, India's benchmark indexes, experience their most significant weekly decline in over two years. This downturn was primarily driven by escalating tensions in the Middle East and increased foreign capital outflows. However, the release of encouraging U.S. labor market statistics after Indian market hours on Friday has helped boost investor confidence.
Asian markets have responded positively to this development, with the MSCI Asia ex-Japan index rising by 0.35%. This upward trend in regional markets is likely to provide additional support to Indian equities.
Market analysts suggest that investors might view the recent correction as an opportunity to acquire stocks at more attractive valuations. This perspective is supported by the actions of domestic institutional investors (DIIs), who were net buyers of shares worth 89.05 billion rupees on Friday. In contrast, foreign institutional investors (FIIs) were net sellers, offloading shares valued at 98.97 billion rupees ($1.18 billion).
Several stocks are expected to be in focus during the trading session:
Jio Financial and BlackRock have received in-principle approval from the Securities and Exchange Board of India (SEBI) to establish a mutual fund business. This development marks a significant entry into India's growing asset management sector.
Macrotech Developers reported an 11% increase in collections and a 21% year-on-year rise in pre-sales for the September quarter of 2024. These figures indicate a robust performance in the real estate sector.
IndusInd Bank announced a 13% annual growth in net advances and a 15% increase in deposits for the September quarter, reflecting positive trends in the banking sector.
Titan Company projected a 25% revenue increase for the September quarter, driven by rising demand following a reduction in customs duty on gold imports. This change has positively impacted the jewelry industry.
As the Indian stock market navigates through global economic uncertainties and geopolitical tensions, investors will be closely monitoring these developments and their potential impact on various sectors. The interplay between domestic and international factors continues to shape the trajectory of Indian equities in this dynamic financial landscape.
"The recent correction in Indian equities presents a potential buying opportunity for investors. However, it's crucial to remain cautious and consider the ongoing global economic uncertainties and geopolitical tensions when making investment decisions."