The Indian stock market is poised to open flat on Friday, with the Nifty 50 expected to open near its previous close. Investors are anticipating a strong corporate earnings season and are closely monitoring the pace of US interest rate cuts.
On Thursday, the Nifty 50 and BSE Sensex recorded their best session since November 22, 2024, driven by gains in financials and autos. Expectations of improved corporate earnings and positive revenue growth projections for Infosys and HCLTech contributed to the market rally.
In global markets, Asian markets opened slightly higher, while Wall Street closed lower overnight. The US dollar reached a two-year high following positive economic data, reinforcing expectations of a slower pace of interest rate cuts by the Federal Reserve. This could impact emerging markets like India, making them less attractive to foreign investors.
Foreign institutional investors turned net buyers of Indian stocks on Thursday after 12 consecutive selling sessions, while domestic institutional investors continued to purchase domestic equities for the 12th consecutive session.
Some stocks to watch on Friday include NHPC, Wockhardt, MOIL, and RITES, as they make significant announcements and developments.
Overall, the market outlook remains cautious as investors wait for more clarity on corporate earnings and global economic developments. It will be essential to monitor US interest rate decisions and their impact on emerging markets like India in the coming sessions.
