India Stocks May Open Higher on UK Deal, Earnings Boost
India’s stock benchmarks are likely to open marginally higher on Thursday, driven by robust earnings from Infosys and optimism over a potential free-trade agreement with Britain. The Gift Nifty futures were trading at 25,298 points as of 7:57 am IST, indicating that the Nifty 50 will open above Wednesday’s close of 25,219.9.
Infosys, the country’s second-largest IT services firm, reported a better-than-expected earnings performance in the third quarter, boosting investor sentiment. The company’s net profit rose 15.2% year-on-year to ₹5,160 crore, while revenue increased 12.3% to ₹29,000 crore. The earnings report sent the stock surging 4.5% in early trade on Thursday, ahead of the market’s opening.
The optimistic earnings outlook from Infosys and other IT majors, such as TCS and Wipro, has lifted investor confidence in the sector. The IT sector has been a major driver of the Indian stock market’s performance in recent years, and its earnings are closely watched by investors.
The potential free-trade agreement (FTA) between India and Britain is also providing a boost to the market. The UK is looking to finalize the deal by the end of the year, which would provide Indian businesses with greater access to the British market. The deal is expected to create jobs and boost trade between the two countries.
The agreement is also seen as a major win for Indian businesses, which have been looking for greater access to the British market for several years. The UK is one of India’s largest trading partners, and the deal is expected to increase bilateral trade by $23 billion.
The Indian rupee has also been trading stronger against the US dollar in recent days, which is providing a boost to the stock market. A weaker rupee can make imports more expensive, which can lead to higher inflation and reduced purchasing power. A stronger rupee, on the other hand, can reduce the cost of imports and boost the purchasing power of consumers.
The Indian stock market has been trading volatile in recent weeks, driven by a range of factors including concerns over the global economy, the ongoing trade tensions between the US and China, and the impact of the COVID-19 pandemic on the global economy.
Despite the volatility, the Indian stock market has been trending higher in recent months, driven by a range of factors including robust earnings growth, a pickup in economic growth, and a resilient consumer sector.
The Nifty 50, which is a widely followed benchmark of the Indian stock market, has been trading above its 50-day and 200-day moving averages, indicating a strong trend in place. The index has also been trading above its 52-week high, which is a sign of a strong uptrend.
In addition to the earnings report from Infosys, investors will be looking for guidance from other major companies, such as TCS, Wipro, and HCL Technologies, which are also expected to report their earnings in the coming days. The earnings reports will provide investors with a better understanding of the performance of the IT sector, which is a major driver of the Indian stock market.
Overall, the Indian stock market is likely to open higher on Thursday, driven by robust earnings from Infosys and optimism over a potential free-trade agreement with Britain. The market is also expected to remain volatile in the coming days, driven by a range of factors including concerns over the global economy and the ongoing trade tensions between the US and China.
