India’s equity benchmarks are set to open largely unchanged on Tuesday, after six consecutive sessions of gains, as investors turn cautious ahead of key US economic releases that could clarify whether the Federal Reserve may cut rates next month.
The Gift Nifty futures were trading at 25,990.5 points, as of 7:46 a.m. IST, indicating that the Nifty 50 could open near Monday’s close of 26,013.45.
The Nifty and Sensex each climbed roughly 2 per cent over the past six sessions, supported by a steady earnings season with no major disappointments, strong domestic inflows, and the resolution of the US government shutdown.
Both indexes now sit about 1% below their record highs reached in September 2024.
Analysts say overall sentiment remains positive, but markets may take a breather in the near term amid global uncertainty and diminishing hopes for a US rate cut.
Wall Street equities closed lower overnight, while Asian markets fell 1 per cent.
This week’s lineup of US data, which includes the delayed September jobs report, will be closely watched following the end of the shutdown last week.
The odds of a 25-basis-point rate cut by the Fed on December 10 have dropped to 42.9 per cent from 62.4 per cent last week, according to CME FedWatch.
Investors await to gauge if the data released this week could increase the possibility of an imminent rate cut, even as several central bank policymakers continue to make hawkish comments, dampening rate-cut hopes.
Higher US rates make investments in emerging markets such as India less attractive for overseas investors.
Meanwhile, domestic institutional investors (DII) remained net buyers of Indian shares for the 14th session on Monday, with inflows of 14.66 billion rupees. Foreign institutional investors snapped a five-session selling streak, purchasing 4.42 billion rupees of stocks, according to NSE’s provisional data.
Stocks to watch
- Blackstone is set to pare its stake in IT company Mphasis through a large block deal, reports CNBC-TV18, adding that the private equity firm will sell up to 9.5 per cent stake at a discount of 4.4 per cent over Monday’s close
- Elevation Capital is set to sell Paytm shares worth 16.4 billion rupees or 2 per cent stake through a block deal, according to media reports; floor price to be at a discount of 3.9 per cent to Monday’s close
- AstraZeneca Pharma signs pact with Sun Pharma to distribute and market Sodium Zirconium Cyclosilicate in India, a drug use to treat hyperkalaemia
- PTC Industries announces expansion of Gujarat facility to add over 50,000 square feet of shop floor area