Indian shares are set to open little changed on Thursday, tracking other Asian peers on worries over US President-elect Donald Trump’s policies, and as uncertainty over US rate cut trajectory resurfaced.
The Gift Nifty futures were trading at 24,336, as of 08:31 a.m. IST, indicating that the benchmark Nifty 50 will open near Wednesday’s close of 24,274.9.
The Adani group stocks will continue to remain in focus after the group clarified that its key executives were not charged with violations of the US Foreign Corrupt Practices Act in last week’s indictment.
The conglomerate’s stocks gained about $14 billion on Wednesday, leading domestic benchmarks 0.3% higher, after losing nearly $34 billion since the indictment till Tuesday.
Other Asian markets traded lower, with the MSCI Asia ex-Japan index shedding 0.25%. Overnight, US inflation data showed consumer spending increased in October, signaling worries that the future rate cut trajectory is going to be slower than expected.
A slowdown in the US interest rate cuts will directly impact the spending environment and affect sectors like information technology and pharma in India, which have significant exposure to the US market.
Concerns over the potential impact of the incoming US administration’s policies, including tariff threats, also weighed.
Indian shares set for muted open; Adani Group stocks in focus
The benchmark Nifty 50 has traded in a narrow 200-point range in the last two sessions, with analysts expecting further consolidation ahead of monthly derivatives series expiry on Thursday.
Foreign institutional investors remained buyers of Indian shares for the third straight session on Wednesday, while domestic institutional investors snapped a two-session selling streak.
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