Cautious Start Likely for Markets on Tuesday; Q4 Earnings to Drive Stock-Specific Moves
On May 26, Foreign Institutional Investors (FIIs) remained net buyers with purchases worth Rs 135.98 crore. Domestic Institutional Investors (DIIs) also added to their holdings, infusing Rs 1,745.72 crore into equities.
Pre-Market Update at 8:00 AM: Indian equity markets are expected to open on a flat-to-cautious note on Tuesday, May 27, amid mixed global cues. As of 7:22 am, the GIFT Nifty hovered around 25,038, down 11 points, indicating a subdued beginning to the trading session.
Asian indices traded unevenly, reflecting investor hesitation amid renewed trade concerns. Meanwhile, U.S. stock futures rose after signs of easing trade frictions between the European Union and the U.S., helping boost sentiment slightly.
Domestic market action is expected to remain driven by company-specific developments, as a slew of Q4 results are due today. Major names scheduled to report include Life Insurance Corporation of India, Bosch, Info Edge India, NMDC, Bharat Dynamics, Gujarat Fluorochemicals, Medplus Health Services, Minda Corporation, EID Parry, Hindustan Copper, Techno Electric, ITI, Procter & Gamble Hygiene and Health Care, and NMDC Steel.
On May 26, Foreign Institutional Investors (FIIs) remained net buyers with purchases worth Rs 135.98 crore. Domestic Institutional Investors (DIIs) also added to their holdings, infusing Rs 1,745.72 crore into equities.
Benchmark indices extended their gains on Monday, marking a second consecutive session in the green. The Sensex climbed 455.37 points to settle at 82,176.45, while the Nifty 50 advanced 148 points to close at 25,001.15.
Falling dollar index levels, now at a one-month low, may encourage further FII inflows into Indian equities. Combined with solid domestic fundamentals and stable global cues, the near-term outlook remains constructive.
On Tuesday morning, Asian stocks offered mixed signals. Japan’s Nikkei 225 declined 0.24 per cent, while the Topix index was flat. South Korea’s Kospi fell 0.47 per cent, and the Kosdaq remained steady. Hong Kong’s Hang Seng opened in the red.
U.S. markets remained closed on Monday due to Memorial Day. However, futures pointed higher following the U.S. administration’s decision to delay tariffs on EU imports, which lifted global risk sentiment.
The U.S. dollar index continued its decline for the third straight session, falling 0.1 per cent, as investors remained wary of U.S. fiscal concerns. Crude oil prices stayed largely unchanged; Brent was down slightly to USD 64.78 per barrel, and WTI futures dipped to USD 61.54. Gold prices inched higher by 0.1 per cent to USD 3,344.36 per ounce, supported by the weakening dollar and ongoing fiscal uncertainties.
For today, Titagarh Rail Systems, Dixon Technologies, RBL Bank and Mannapuram Finance continue to remain under the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.