India’s equity benchmarks are poised to open higher on Thursday, following gains in Asian markets and a dip in U.S. Treasury yields and the dollar.
As of 8:00 a.m. IST, GIFT Nifty futures traded at 24,733.5, signaling a positive start above the previous Nifty 50 close of 24,620.2. The MSCI Asia ex Japan index rose 0.8%, led by South Korean shares hitting an 11-month high amid post-election optimism and gains in Hong Kong stocks.
U.S. stocks closed mixed overnight, with Treasury yields and the dollar falling after data showed the U.S. services sector contracted for the first time in a year. Investors are now focused on upcoming U.S. employment data. Lower Treasury yields generally support equities in emerging markets like India.
Foreign investors ended a three-day selling streak in India by purchasing shares worth 10.76 billion rupees ($125.3 million) on Wednesday, according to provisional data. Domestic institutional investors also remained net buyers for the twelfth consecutive session.
In India, market participants await the Reserve Bank of India’s policy announcement on Friday. The central bank is widely expected to cut key lending rates by 25 basis points for the third straight meeting.
Stocks to Watch:
Hindustan Aeronautics is in talks with General Electric for engines for the LCA Mark 2 aircraft and is not negotiating with other companies.
The National Company Law Tribunal approved the merger of Fusion Cosmeceutics and Just4Kids Services with Honasa Consumer.
Force Motors reported increased domestic and total sales in May.
Gland Pharma disclosed that France’s medical regulator issued a final report with 11 observations for Cenexi’s manufacturing unit.
