India’s benchmark Nifty 50 is set to open higher on Thursday, fueled by optimism over an earnings rebound and renewed foreign investor buying.
Futures Snapshot:
- Nifty futures (GIFc1): 26,260 points (7:40 a.m. IST)
- Yesterday’s close: 25,868.6 (one-year high)
- All-time high: 26,277.35
The Nifty 50 and Sensex have gained ~3% over the last five sessions, supported by stable earnings from banks and large corporates like Reliance Industries.
Drivers of Optimism
- Earnings Revival:
- Expectations of a second-half fiscal 2026 earnings recovery are rising, aided by tax cuts, policy support, and a festive season boost to demand.
- Trade Developments:
- India and the U.S. are reportedly nearing a trade deal that could lower U.S. tariffs on Indian exports from 50% to 15%-16%, enhancing investor sentiment.
- Foreign Inflows:
- Foreign institutional investors (FIIs) have purchased Indian shares for five consecutive sessions, providing additional support for the benchmark.
“A decisive breakout above 26,000–26,300 could lead to fresh lifetime highs for Nifty,” said R Ponmudi, CEO of Enrich Money.
Global Context
- Asian markets: Opened lower amid mixed global cues.
- U.S. equities: Fell overnight, dragged down by Netflix following disappointing guidance.
- Trade tensions: Washington considers restrictions on software exports to China in response to rare earth export curbs.
- Oil markets: Prices rose following U.S. sanctions on Russian energy firms Rosneft and Lukoil over the Ukraine conflict.
Summary
Robust domestic earnings, steady foreign flows, and supportive trade news are creating strong upward momentum for the Nifty 50, with a potential challenge to its all-time high near 26,277 points. Investors will watch global cues and policy updates for further directional signals.