Stock market today:Domestic benchmark indices are likely to open higher on Thursday, tracking the rebound in their Asian peers after a sharp sell-off in the previous session.
The GIFT Nifty GIFc1 was trading at 25,362.5 points at 8:03 am IST, indicating that NSE The Nifty 50 index .NSEI is set to open above its previous close of 25,198.7 points.
The benchmark Nifty 50 index on Wednesday snapped its longest winning streak, during which the index hit record highs earlier in the week.
Lackluster US economic data raised fears of a slowdown and weighed on global markets in the previous session.
Weak US labor market data and comments from a key Federal Reserve official strengthened the case for an aggressive interest rate cut: the odds of a 50-basis-point cut on Sept. 18 rose to 45 percent from 38 percent the day before.
Asian markets rallied on Thursday, with the MSCI Asia ex-Japan index .MIAPJ0000PUS gaining 0.5 percent after a nearly 2 percent drop on Wednesday. MKTS/GLOB
“Buying on every dip, even at record levels, indicates the resilience of domestic equities in the face of global volatility,” said Siddhartha Khemka, head of research and wealth management at Motilal Oswal Financial Services.
Indian stocks could extend gains on surplus liquidity, analysts say.
“Valuations no longer seem to be a concern for people and excess liquidity availability means a quick rationalisation of any minor positive news flow as the next catalyst for growth,” said analysts led by Bernstein’s Venugopal Garre.
Among individual stocks, Reliance Industries RELI.NS will be in the spotlight. The oil and telecom conglomerate will consider a proposal to issue bonus shares on a 1:1 basis, its first such move since 2017.
The company also won a tender under an incentive program supporting the production of batteries for electric vehicles, according to a statement from the Indian government.
Actions to take into account
ALLE.NS allied blenders:Allied Blenders will buy a majority stake in a premium spirits manufacturing and marketing company and invest Rs 700 crore ($8.3 million) in securities of the target company.
General Insurance Corporation of India GENA.NS:The Indian government will exercise the oversubscription option on its stake sale in the company.
Raymond RAYL.NS Lifestyle:Raymond’s RYMD.NS lifestyle division to go public.
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