Indian stocks set to open higher on foreign inflows, earnings optimism

India’s equity benchmarks are poised to open higher on Thursday, supported by returning foreign inflows and an improving earnings outlook ahead of key US jobs data.

Both the Nifty 50 and Sensex indexes, now less than 1% off record highs, are set for record peaks after 14 months.

The Gift Nifty futures were trading at 26,141 points, as of 07:56 a.m. IST, indicating that the Nifty 50 could open above previous session’s close of 26,052.65.

Both Indian benchmarks gained about 0.6% each on Wednesday, led by information technology stocks after Infosys, the country’s No. 2 software exporter, said its 180-billion-rupee share buyback programme will begin on November 20.

Rising optimism over a potential India–U.S. trade deal, positive earnings prospects, and attractive valuations could spur renewed foreign buying and further lift domestic equities, according to two analysts.

NSE provisional data, showed that foreign portfolio investors bought Indian shares worth 15.81 billion rupees on Wednesday, while domestic institutional investors added 13.61 billion rupees.

“We maintain a positive outlook for Indian markets and expect the Nifty to attempt fresh highs in the near term, amid rising preference for large-cap and strong mid-cap names,” said Ajit Mishra, senior vice president of research at Religare Broking.

Other Asian markets rose 1.2%, tracking an overnight rally on Wall Street, as investors cheered Nvidia’s upbeat earnings that eased concerns about the artificial intelligence bubble.

Investors await the release of the U.S. jobs report for September, due later in the day, for clues on the Federal Reserve’s rate-cut trajectory.