Indian equities are poised for a positive opening on Tuesday, bolstered by higher GIFT Nifty futures. Investors are expected to respond favorably to the recent data indicating a decline in consumer price inflation for December, alongside potential bargain hunting following four consecutive days of market downturns.
According to the National Statistical Office, India's consumer price inflation eased slightly to 5.22% in December, down from 5.48% in November, with expectations set at 5.3%. The wholesale price inflation data will be revealed later today.
In corporate earnings, HCL Technologies reported a consolidated net profit of ₹4,590 crore for the third quarter, showing an increase from the ₹4,235 crore reported in the previous quarter. Similarly, Angel One announced a third-quarter profit increase of ₹20 crore, totaling ₹280 crore compared to the same period last year, while Anand Rathi Wealth saw its third-quarter earnings rise to ₹77 crore.
Companies including HDFC Asset Management Company, Hathway Cable & Datacom, Network18 Media & Investments, Shoppers Stop, and SRM Energy are scheduled to announce their quarterly earnings today.
On Monday, Indian markets fell for the fourth consecutive session as robust U.S. employment data diminished the likelihood of an immediate rate cut by the Federal Reserve. Investors remained cautious, awaiting critical inflation data.
The BSE Sensex dropped 1,048.90 points, settling at 76,330.01, while the NSE Nifty50 declined by 345.55 points, closing at 23,085.95.
Meanwhile, U.S. stocks ended with mixed results. The S&P 500 increased by 0.2%, the Dow Jones added 0.9%, and the Nasdaq decreased by 0.4%.
Early session pressures in the technology sector, largely due to Nvidia's (NVDA) sharp 4.7% decline, contributed to early market challenges. Ongoing concerns over interest rate trajectories persisted following a stronger-than-expected jobs report. However, as the session progressed, selling pressures eased, with some traders opting to purchase undervalued stocks, helping the S&P 500 recover from its lowest intraday point in more than two months.
