Indian equities are expected to open on a tentative note this Friday as investors digest a mixed set of global signals and earnings announcements from major players such as Reliance Industries, Infosys, Axis Bank, and LTIMindtree.
Reliance Industries reported a record-breaking quarterly profit while Infosys upgraded its revenue forecast for the fiscal year 2025. However, Axis Bank presented a modest increase in its December quarter profits, and LTIMindtree fell short of expectations with a 7.14% decline in consolidated net income for the third quarter.
On Thursday, the Sensex and Nifty indices logged slight gains, extending their upward trajectory for the third consecutive day. The rupee dipped by 19 paise to settle at 86.55 per US dollar.
Asian markets trimmed initial losses after China's fourth-quarter GDP figures surpassed forecasts. Additionally, factory production and retail sales outperformed expectations, while home prices fell at a slower rate for the fourth month. However, investment in fixed assets did not meet projections.
The Japanese yen is on track for its best weekly showing in over a month, motivated by speculation of a Bank of Japan interest rate hike. Meanwhile, the US dollar softened against other currencies, and gold maintained its position near a one-month high, poised for a weekly rise amid renewed hopes of Federal Reserve interest rate reductions.
Oil prices nudged upwards in Asian trading, aiming for a fourth consecutive weekly increase, fueled by supply concerns following US sanctions on Russian oil producers and indications from a Fed official of potential rate reductions.
In the US, stock markets saw a retreat on Thursday, following a strong performance the previous day driven by positive inflation data and robust bank earnings. The Nasdaq Composite fell by 0.9%, whereas the Dow and S&P 500 each lost approximately 0.2%, despite declining bond yields influenced by dovish comments from Federal Reserve Governor Christopher Waller.
In economic developments, data indicated a steeper-than-expected deceleration in retail sales growth in December, alongside a higher-than-anticipated rise in weekly jobless claims. Conversely, a measure of manufacturing activity in the US Mid-Atlantic region surged significantly in January, marking its largest increase in approximately four-and-a-half years.
In Europe, stocks reached a monthly high on Thursday, bolstered by positive earnings from Cartier owner Richemont and renewed hopes for interest rate cuts, which supported investor sentiment. The pan-European STOXX 600 climbed 1%, Germany's DAX increased by 0.4%, France's CAC 40 jumped 2.1%, and the UK's FTSE 100 rose by 1.1%.
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