Sensex, Nifty50 open on a flat note amid mixed global cues – Axis Bank, Dharmaj Crop Guard, Infosys among stocks to watch out for

• India’s benchmark indices Sensex and Nifty50 opened on a flat note on Thursday amid mixed global cues due to cautions about recession and US Fed’s monetary tightening.
  
• Sensex opened 93 points higher at 62,504 while the 50-stock index Nifty50 was up 10 points at 18,571.
  
• Investors might also keep an eye on the outcome of the Gujarat and Himachal Pradesh assembly elections – the vote counting started earlier this morning.
  
• Brent crude oil prices remained below $80 levels at $77 per barrel on Thursday amid concerns of economic slowdown.
  

Sensex and Nifty50 opened on a flat note on Thursday amid mixed global cues and worries in the US about the Fed’s monetary policy tightening. SGX Nifty, an early indicator of how the markets may perform, was up 0.07% early morning today.

Earlier on Wednesday, the Reserve Bank of India announced a 35 basis points rate hike in line with expectations, but analysts suggest that RBI governor Shaktikanta Das’ commentary indicates another rate hike is on the cards. This could come in some time in February 2023, with the quantum expected to be 25 basis points.

Sensex opened 93 points higher at 62,504 while the 50-stock index Nifty50 was up 10 points at 18,571.

“Indian markets are likely to open on a flat to negative note today tracking weak global cues. Investors will now look ahead to the Fed meeting next week after RBI hiked the repo rate by 35 bps in the fight against inflation amid recession concerns,” said ICICI Direct.

On Wednesday, benchmark indices closed on a negative note after the RBI’s commentary was seen as slightly hawkish, indicating another rate hike was in the cards.

Meanwhile Brent crude oil prices remained below $80 levels at $77 per barrel on Thursday amid concerns of economic slowdown.

At the same time rupee was up 0.12% at 82 against the US dollar.

Investors might also keep an eye on the outcome of the Gujarat and Himachal Pradesh assembly elections – the vote counting started earlier this morning.

Global markets mixed

Markets around the world had a mixed day on Wednesday. The US markets treaded with caution on concerns of a recession and the impact of the US Fed’s monetary tightening on corporate earnings.

While S&P 500 ended the day with a 0.19% decline, the tech-heavy Nasdaq closed 0.51% lower. The Dow Jones Industrial Average ended the day flat.

Asian markets opened on a mixed note on Thursday, with the Hang Seng index rising 2.74%, but Shanghai Composite declining 0.07%. Nikkei 225 posted a 0.74% decline, while KOSPI was 0.55% in the red.

RBI cuts India’s FY23 GDP growth forecast to 6.8%

During the credit policy announcement on Wednesday, RBI also announced a downgrade in India’s FY23 GDP growth forecast to 6.8% from 7%. Notably, this is the second GDP downgrade from the RBI, which had predicted the Indian economy to expand by 7.2% at the beginning of the year.

RBI’s forecast is also slightly lower than agencies like S&P, CRISIL, and Moody’s, which pegged the Indian economy to expand by 7% in FY23.

Stocks to watch on Thursday

Axis Bank: The private lender has announced to raise funds through tier II bonds aggregating to a total of ₹12,000 crore.

Infosys: The IT major share buyback opens today amounting to ₹9,300 crore at a price not more than ₹1,850 per share.

L&T: The construction giant has received mega orders for its minerals and metals business, which will carry out expansion plans in Gujarat and Odisha.

Dharmaj Crop Guard: Shares of the agrochemical company are expected to list on exchanges on December 8.

Stocks under F&O ban on NSE

Punjab National Bank, Indiabulls Housing Finance and Gujarat Narmada Valley Fertilizers are in the F&O ban list on NSE on Thursday.

SEE ALSO:

RBI’s lower rate hike as expected, but Das’ commentary still hawkish, say analysts

Sula Vineyards to open IPO next week from Dec 12-14; GMP already at ₹70 per share

Cement makers plan to hike price by ₹10-15 per bag