Domestic markets are likely to open on a flat note on Friday. Analysts expect the market to remain lacklustre till Union Budget is presented. Gift Nifty at 23,595 indicates a flat opening for Nifty50,
Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One Ltd, said, “The active involvement of various sectors is driving positive market sentiment and contributing to a bullish trend.”
“This diverse participation is expected to strengthen the trading community, and hence, the stock-centric approach is likely to play well in the current market scenario. Simultaneously, it is crucial to closely monitor the global indices as they are likely to establish the initial tone for our equity market,” he added.
Meanwhile Asian stocks are trading flat, giving no clear signal to domestic traders.
The return of foreign portfolio investors as buyers is a welcome change, said analysts.
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FPIs on Thursday bought shares worth ₹451 crore while on Wednesday they were buyers to the tune of ₹7,908 crore, according to exchange data.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Despite experiencing significant volatility, the domestic market concluded the day positively. In the near-term, market attention is expected to centre around the upcoming Union Budget and the progress of the monsoon.”
“On the global front, the decline in US bond yields has facilitated robust FII inflows in recent days. The fertilizer stocks exhibited good momentum, driven by the proposed removal of GST & hike in MSP,” he added.
Mandar Bhojane, Research Analyst, Choice Broking, said, ”The India VIX, which measures market volatility, decreased by 2.68 percent intraday, settling at 13.3450, indicating reduced market fear.
“Regarding the Open Interest (OI) data, on the call side, the highest OI was observed at the 24,000 and 24,200 strike prices. On the put side, the highest OI was at the 23,000 strike price,” he added.
Meanwhile, IT major Accenture Inc results in the US will keep Indian stocks in focus, said analysts.
According to Emkay Global, Accenture (ACN) reported revenue of $16.5 billion, down 0.6 per cent year-on-year (up 1.4 per cent in LC) in Q3 FY24. Revenue was slightly higher than the mid-point of the company’s guidance of -1 per cent to +3 per cent (in LC). It narrowed its FY24 revenue guidance to 1.5-2.5 per cent in LC (from 1-3 per cent earlier).
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“Management commentary on the demand environment was largely unchanged, with clients continuing to limit discretionary spending and the delay in decision-making persisting, particularly for smaller deals. However, the company maintained the mid-point of its guidance; This points to a broadly stable demand environment. Also, Q4 guidance of 2-6 per cent growth in LC indicates a steady FY24 exit.
“The stability bodes well for Indian IT companies, even as a full-fledged recovery is now expected in CY25/FY26. We expect the start of the interest rate-cut cycle to act as a signalling trigger for clients, to gain confidence on the inflation trajectory and macro stability, which may drive demand recovery and an uptick in discretionary spending. We expect the IT stocks’ earnings downgrade to bottom out in H1 FY25, if current expectations on interest rate cut materialize. Our pecking order is Infosys, HCL. Technologies, Wipro, Tech Mahindra, TCS, and LTIMahindra in large-caps. Among mid-caps, we prefer Cyeint, Birla Soft, Zomato, Firstsource Solutions and Mphasis,” it added..