India Stocks: Indian shares set for a muted start on fading hopes of early US rate cut

Geojit Financial Services

23/05/2024 03:39

BENGALURU, May 23 (Reuters) - Indian shares are set for
a muted open on Thursday, after the Federal Reserve's latest
policy minutes reflected disappointment in recent inflation
data, dampening hopes of an early rate cut.
    The Gift Nifty  GIFc1  was trading at 22,646 as of 7:52 a.m.
IST, indicating the Nifty 50  .NSEI  will open near Wednesday's
close of 22,597.80.
    Asian markets opened lower, with the MSCI Asia ex-Japan
index  .MIAPJ0000PUS  dropping 0.75%.
    All three major U.S. stock indexes ended lower overnight,
after the minutes of the latest Fed policy meeting indicated
that the U.S. central bank officials acknowledged disappointment
over recent inflation readings, signalling that interest rates
could remain higher for longer.  MKTS/GLOB 
    U.S.-rate cut sensitive Nifty information technology stocks
 .NIFTYIT , which rose 0.7% in the previous session, would be in
focus.
    The Indian shares' volatility index  .NIFVIX  has been
hovering around 19-month highs as worries about the election
results and foreign selling pressure weigh on investor
sentiment.
    "Markets may underperform in the short term as they wait for
the election outcome, with FIIs (foreign institutional
investors) staying on the sidelines," Vinod Nair, Research Head,
Geojit Financial Services said.
    Foreign investors have sold Indian shares worth 279.38
billion rupees ($3.35 billion) so far in May, the highest since
January 2023. 
    
STOCKS TO WATCH

    ** Grasim Industries  GRAS.NS : Grasim Industries  GRAS.NS :
Aditya Birla Group-owned company reported a net loss in the
fourth quarter hurt by an impairment charge as its unit
temporarily idled operations.     
    ** Power Grid Corporation of India  PGRD.NS : State-run
energy transmission company posted a fall in fourth-quarter
profit, hit by a weak performance in its primary power
transmission business.    
    ** Jubilant FoodWorks  JUBI.NS : Domino's India franchisee
reported a rise in fourth-quarter profit benefitting from
one-time gain and more store openings.


($1 = 83.2990 Indian rupees)

 (Reporting by Dimpal Gulwani in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((dimpal.gulwani@thomsonreuters.com))