Investors are gearing up for a positive start to the day as markets are set to open higher, driven by optimism surrounding the interim Union budget and the upcoming national elections later this year. The GIFT Nifty is currently trading at 21,829.50 points, indicating a likely opening above Tuesday’s close of 21,725.70 for the NSE Nifty 50.
Prime Minister Narendra Modi is expected to adopt a cautious approach in the budget, focusing on infrastructure development and fiscal consolidation rather than introducing major new welfare programs ahead of the general elections. While significant policy changes are unlikely, attention will be on the government’s capital expenditure expansion and the extent of fiscal consolidation, according to a note from ICRA.
Global equities, however, are subdued after the US Federal Reserve’s recent commentary raised doubts about early rate cuts. The Fed signaled that rate cuts would not be appropriate until inflation cools off further, impacting sentiments in Asian markets.
In the midst of these developments, fintech firm Paytm is in the spotlight as the Indian central bank restricts Paytm Payments Bank from fresh deposits and credit transactions, citing supervisory concerns.
On the foreign investment front, foreign institutional investors (FIIs) bought Indian shares worth 16.61 billion rupees ($199.95 million) on a net basis on Wednesday. However, in January, FIIs offloaded 257.44 billion rupees of shares after recording record monthly purchases in December. This shift comes as the Nifty and S&P BSE Sensex end a two-month winning streak.
Stocks to Watch: Auto, Glenmark Pharmaceuticals, Shree Cement, Godrej Consumer Products
Auto stocks such as Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Bajaj Auto will be closely watched as companies are set to report monthly sales data for January.
Glenmark Pharmaceuticals has announced a partnership with Pfizer to launch a dermatitis drug that has received approval from regulators in India, the U.S., and the European Union.
Shree Cement has surpassed profit expectations in the December quarter, driven by lower fuel costs and higher volumes.
Godrej Consumer Products has posted its slowest revenue growth in over three years due to soft demand.
Investors will be keeping a keen eye on these stocks and developments in the market as the day unfolds.
Comments