India Stocks: Indian shares set for a muted start as US data adds to rate cut woes

JM Financial

24/05/2024 03:31

BENGALURU, May 24 (Reuters) - Indian shares were set for
a muted start on Friday, after notching up record highs in the
previous session, as robust economic data in the U.S. dampened
hopes of early interest rate cuts.
    The Gift Nifty  GIFc1  was trading at 22,975 as of 7:58 a.m.
IST, indicating the Nifty 50  .NSEI  will open near Thursday's
close of 22,967.65.
    Indian benchmarks closed at all-time high levels, and posted
their best session since March 1 on Thursday, as the central
bank's record dividend to the government boosted financials.
    "We are seeing some short covering in the market. If the
election outcome aligns with current market expectations, we
expect Nifty to reach new highs in the first week of June,"
Neeraj Chadawar, Head – Fundamental and Quantitative Research at
Axis Securities said. 
    Indian shares' volatility index  .NIFVIX  has been hovering
around 19-month highs amid uncertainty around outcome of general
elections and sustained foreign selling pressure.
    Foreign investors have sold Indian shares worth 279.38
billion rupees ($3.36 billion) so far in May, the highest since
January 2023.
    Wall Street indexes declined overnight as strong labour
market and business activity data fueled concerns over
tighter-for-longer monetary policy.
    Asian peers were also lower with the MSCI Asia ex-Japan
 .MIAPJ0000PUS  falling about 1%.
    
    STOCKS TO WATCH
    
    ** Interglobe Aviation  INGL.NS  - India's IndiGo airline
operator's fourth quarter profit doubled beating analyst
estimates while the airline said it will introduce business
class on some domestic flights this year.
    ** Honasa Consumer  HONA.NS  - Indian skincare firm
Mamaearth's parent posted a fourth-quarter profit compared to a
loss year ago as consumers stocked up beauty and personal care
products.
    ** Key earnings: Aluminium and copper producer Hindalco
Industries  HALC.NS , automaker Ashok Leyland  ASOK.NS  and JM
Financial  JMSH.NS  

($1 = 83.2680 Indian rupees)

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