According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, there has been no consistency in the behavior of FIIs and DIIs this month. They have been alternately buying and selling, which is keeping the market within a range.
In order for the market to break out or break down from this range, there need to be triggers. One potential negative trigger could be a slightly hawkish statement from the Fed, delaying the expected rate cuts until March 2023. The US CPI inflation data, which will be released tonight, will provide clues about this, Vijayakumar said.
The third quarter results season begins today with the results of TCS and Infy. These results will give an indication of the Nifty earnings for FY24. Financials, capital goods, telecom, automobiles, and hotels are expected to have good numbers. IT results will be lackluster and FMCG results will be mixed, according to Vijayakumar.
He also added that stock-specific responses to results and management commentary will be more important than broad market action.
Deepak Jasani, Head of Retail Research at HDFC Securities, noted that US stocks finished higher on Wednesday, but fell short of an all-time high due to remarks from a key Federal Reserve policymaker. Asian stocks, as well as US and European equity futures, rose ahead of inflation data that will be released later on Thursday, providing clarity on the path ahead for Federal Reserve policy.
Jasani also mentioned that the Securities and Exchange Commission approved several spot bitcoin exchange-traded funds for the first time on Wednesday.
On Thursday, the BSE Sensex is up 105 points at 71,763 points. Indusind Bank and Axis Bank are both up 1%.
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