Nifty Set to Open in the Green Tracking Global Cues; Trent and BEL to Enter Sensex, While JSW Steel and BEML Q4 Results Remain in Focus
On Friday, May 23, Indian equity benchmarks are poised to open on a positive note. As of 7:20 am, the Gift Nifty was trading near the 24,684 mark, up 30 points from the previous close, indicating a likely green start for the session.
The selling pressure that weighed down domestic markets in the previous trading session appears to have subsided. Adding to investor optimism, Morgan Stanley has slightly raised its forecast for India’s economic growth. The global financial firm now expects the economy to grow by 6.2% year-on-year in FY26, an improvement from its earlier estimate of 6.1%. For FY27, the projection has been revised upward to 6.5% from 6.3%.
Further bolstering sentiment, Fitch Ratings has upgraded India’s medium-term growth forecast to 6.4%, attributing the revision to improved labour force participation, even as it lowered growth estimates for several other emerging markets.
Asian peers saw mostly positive movement, whereas U.S. stocks closed largely unchanged overnight. This followed the narrow approval of President Donald Trump’s tax reform bill by the U.S. House of Representatives—passed by just one vote—raising fresh concerns about the nation's growing debt burden.
Starting June 23, the BSE Sensex will see two new additions as part of its periodic review. Tata Group’s retail arm, Trent and state-run Bharat Electronics are set to join the 30-stock index, replacing Nestle India and IndusInd Bank.
Amid fluctuating global cues, stock-specific movements are expected to persist as the focus remains on Q4 earnings. Several prominent Indian companies are scheduled to announce their fourth-quarter results on Friday.
JSW Steel, Ashok Leyland, Balkrishna Industries, Glenmark Pharma, Narayana Hrudayalaya, AIA Engineering, Timken India, Devyani International, BEML, Reliance Infrastructure and Aditya Birla Fashion & Retail are scheduled to announce their Q4 earnings today.
On May 22, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹5,045.36 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares amounting to ₹3,715 crore during the same session.
On Thursday, the Indian stock markets closed in the red due to worries over US debt levels. The Sensex fell by 644.64 points (0.79%) to close at 80,951.99, while the Nifty 50 declined by 203.75 points (0.82%) to close at 24,609.70.
Foreign institutional investors (FIIs) have recently turned net sellers, and if global bond yields continue to rise, it may trigger more outflows from emerging markets. Additionally, with the upcoming F&O expiry next week, volatility could pick up, potentially leading to a phase of sharp movement in the markets
Asian markets traded mostly higher on Friday as investors assessed a slew of economic data from the region, including Japan inflation.
Japan witnessed its sharpest rise in core inflation in over two years this April, with the core Consumer Price Index (CPI)—which excludes fresh food but factors in energy costs—climbing 3.5% year-on-year. This uptick not only marked an acceleration from March’s 3.2% increase but also surpassed market expectations of a 3.4% rise.
The U.S. stock market closed mostly flat on Thursday after a volatile trading session, as investors reacted to the House of Representatives approving President Donald Trump’s tax and spending legislation.
The Dow Jones Industrial Average dipped slightly by 1.35 points to end at 41,859.09. The S&P 500 edged down 2.60 points, or 0.04%, finishing at 5,842.01. In contrast, the Nasdaq Composite gained 53.09 points, or 0.28%, closing at 18,925.74.
U.S. 30-year Treasury yields briefly climbed to their highest point in 19 months before pulling back on Thursday, as concerns over the nation's fiscal health and investor appetite for government debt persisted. By late Thursday, the yield on the 30-year bond had eased to 5.0521%, down 3.7 basis points. Meanwhile, the yield on the 10-year benchmark note declined to 4.551%, after touching 4.629% earlier in the session—its peak since February 12.
Crude oil prices moved lower and are set to post their first weekly loss in three weeks, pressured by another significant production boost from OPEC. Brent crude slipped 0.42% to trade at $64.17 a barrel, extending its decline for a fourth straight session and registering a weekly drop of around 2%. Meanwhile, US WTI crude futures fell by 0.52% to $60.88.
Gold is heading for its strongest weekly gain in over a month, supported by a weaker US dollar and increased demand for safe-haven assets. Spot gold edged up by 0.2% to reach $3,299.79 per ounce. The metal has risen around 3% this week, marking its best weekly performance since early April. US gold futures also rose by 0.2%, settling at $3,299.60 per ounce.
Disclaimer: The article is for informational purposes only and not investment advice.
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