BENGALURU: India’s benchmark Nifty 50 index is set to open higher on Tuesday, in sync with a rebound in Asian peers, following a drop in the previous session.
India’s GIFT Nifty was trading at 21,704.50 as of 8:09 a.m. IST, suggesting the NSE Nifty 50 will open above its close of 21,513.00 on Monday.
The MSCI’s broadest index of Asia-Pacific shares outside Japan gained about 0.5%, after shedding 0.85% on Monday.
Wall Street equities closed higher overnight, while US Treasury yields fell ahead of a key inflation reading due on Thursday.
Besides US inflation data, corporate earnings and domestic macroeconomic data will influence the trajectory of domestic equities in the near-term, analysts said.
The Nifty fell 0.91% on Monday, dragged by financials and consumer stocks on concerns over their earnings.
Financials, consumer weigh on Indian shares
“We expect a further rise in volatility in domestic markets,” said Morgan Stanley analysts led by Ridham Desai.
While valuations appear to be stretched, earnings growth momentum, flexible inflation targetting made India one of the top picks in emerging markets, the brokerage added.
Foreign institutional investors net bought shares worth 160.30 million rupees ($1.9 million) on Monday, while domestic investors purchased a net 1.56 billion rupees of shares, according to exchange data.
Monthly FPI buying in Indian equities hit a record in December, while India’s mutual fund assets topped a record 50 trillion rupees in the month.
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