Indian Stock Market May See Higher Opening on Strong US Data
Indian shares are expected to open higher on Friday, buoyed by improved sentiment following robust economic data from the United States. The strong data has eased fears of a global economic slowdown and boosted investor confidence.
India’s NSE stock futures listed on the Singapore Exchange were up by 0.46% at 19,147.50. The blue-chip Nifty 50 and Sensex indexes reached record highs earlier this week, driven by gains in some Adani group stocks and heavyweight financials.
According to Christy Mathai, a fund manager at Quantum AMC, the improved corporate balance sheet strength and stability in the financial system have aided the country’s growth. He suggests that investors stay invested and maintain their equity allocation in line with long-term plans.
So far this week, the Nifty 50 has risen by 1.64%, positioning itself for the best week in two months. However, Thursday’s trading was closed in observance of a local holiday.
In the US, Wall Street equities closed higher after strong economic data was released. The upward revision of the first-quarter GDP, a surprise fall in jobless claims, and positive results from the US Federal Reserve’s stress test have helped allay recession fears. However, this data also suggests that the Federal Reserve may keep interest rates higher for a longer period.
The Asian markets were mixed, with lackluster industrial output data from China casting a shadow on investor sentiment.
Foreign institutional investors bought 123.50 billion rupees ($1.50 billion) worth of Indian equities on a net basis. On the other hand, domestic investors sold 10.21 billion rupees of shares, based on provisional NSE data.
In other news, Goldman Sachs Trust II – Goldman Sachs GQG Partners International Opportunities Fund purchased 11.95 million shares of Adani Green Energy (ADNA.NS) at 920.05 rupees per share. Additionally, Infinite Trade and Investment sold 46 million shares at a slightly lower price of 920.03 rupees per share.
It is expected that the positive sentiment from the strong US data will continue to support Indian stocks, with investors encouraged to stay invested for the long term. While concerns about the global economy persist, the improved corporate balance sheet strength and stability in the financial system offer reassurance. As markets open, investors will closely monitor developments in both domestic and international markets to make informed investment decisions.
