Sensex, Nifty Likely To Open Flat Today After Markets Rally For 10 Days

Analysts awaited more large cap companies to report their July-September earnings for cues

Domestic stock markets are likely to start Thursday’s session on a subdued note, following a rally that lasted 10 days in a row. The Singapore Exchange’s Nifty futures – an early indicator of the National Stock Exchange’s (NSE) Nifty 50 benchmark index – was flat at 11,973.00 ahead of the opening of Indian markets. Earlier, the Nifty futures had moved in a narrow range on either side of its previous close. Analysts awaited more large cap companies to report their July-September earnings for cues. 

Infosys shares will be in focus today, a day after the country’s second largest IT company raised its annual revenue growth forecast as it posted a better-than-expected quarterly profit, buoyed by growth in demand for its digital services during the pandemic.

Equities elsewhere in Asia fell on Thursday as hopes of US fiscal stimulus before the presidential election faded and a record number of new coronavirus infections in parts of Europe propelled investors toward safe-havens such as gold.

Downbeat comments from US Treasury Secretary Steven Mnuchin that a stimulus deal was unlikely be made before the November 3 vote weighed on fragile investor sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last seen trading 0.79 per cent lower, while Japan’s Nikkei 225 benchmark was down 0.46 per cent.  

On Wednesday, the S&P BSE Sensex and NSE Nifty 50 indices managed to close higher for the tenth day in a row, as bank stocks rose sharply ahead of a court hearing on waiving interest on loans under moratorium. The Nifty closed up 0.31 per cent at 11,971.05 and the Sensex 0.42 per cent higher at 40,794.74.

Banks hoped that borrowers will not be given further respite beyond the waiver on compound interest for loans up to 20 million rupees for six months, which the government has agreed to pay.

Later that day, the Supreme Court said any delay in implementing a waiver on “interest on interest” on loans up to Rs 2 crore is not in the interest of the common man. “Common man’s Diwali is now in the government’s hands,” the bench said in a lighter vein. The top court expressed hope that orders will be out before the next hearing, listed for November 2.

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