BENGALURU: India’s benchmark Nifty 50 index is set to open higher on Friday, on course to erase weekly losses, ahead of quarterly results starting next week, while global stocks remained subdued after fresh data raised doubts over early US rate cuts in 2024.
India’s GIFT Nifty was trading at 21,770 as of 8:24 a.m. IST, suggesting the NSE Nifty 50 will open above its previous close of 21,658.60 points.
Asian markets were muted, tracking a weak close on Wall Street overnight, after resilient labour market data dampened expectations of multiple interest rate cuts by the US Federal Reserve this year.
The blue-chip Nifty 50 witnessed selling pressure after hitting record high levels on Monday, before trimming losses on Thursday, led by strong business updates by key lenders and financial companies. The index is down 0.33% for the week so far.
The recovery in corporate earnings should sustain in 2024, said Saion Mukherjee and Amlan Jyoti Das, research analysts at Nomura.
The brokerage is slightly defensive after the recent run-up in valuations and it sees every correction as a “buying opportunity”.
Financials, energy lead rebound in Indian shares after fall
While the ongoing consolidation will continue in the next few sessions ahead of corporate earnings, the overall outlook for Indian equities remained positive, according to analysts.
Since hitting the $4-trillion mark on Nov. 30, the total market capitalisation of all NSE-listed companies has scaled fresh highs and is inching towards the $4.50-trillion level.
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