Indian markets open higher on indications of US Fed slowing interest rate hikes – Tata Consumer, Keystone Realtors, Biocon in focus

• Sensex and Nifty50 opened in the green for the third consecutive day amid positive cues from global markets.
• The 30-stock index Sensex opened 145 points higher at 61,656 while the Nifty50 opened 58 points up at 18,326.
• According to analysts at Goldman Sachs, Nifty50 could reach 20,500 by the end of 2023.
• Tata Consumer, Keystone Realtors, Biocon and other stocks will be in focus today.

Sensex and Nifty50 opened in the green for the third consecutive day amid positive cues from global markets. This comes after the US Fed’s meeting revealed that the central bank is open to the possibility of slowing down the pace of interest rate hikes.

SGX Nifty, an early indicator of how the Indian market may perform, was up 0.47% on Thursday early morning.

The 30-stock index Sensex opened 145 points higher at 61,656 while the Nifty50 opened 58 points up at 18,326.

On Wednesday, Sensex closed 92 points higher at 61,511 while the Nifty50 ended the day 23 points up at 18,267. In the last five days, Sensex has fallen 0.85% while Nifty50 has slipped 0.65%.

“Indian markets could open higher, in line with higher Asian markets today and positive US markets on Wednesday,” said Deepak Jasani, head of retail research at HDFC securities.

According to analysts at Goldman Sachs, Nifty50 could reach 20,500 by the end of 2023, which is an upside of 12% from the current levels. However, the research firm noted that it is less likely that the Indian equities market will continue to outperform its global peers for the third consecutive year due to rate hikes, weak rupee and sticky inflation.

Asian markets trended higher after the US Federal Reserve minutes indicated a slowdown in the pace of hike in interest rates. Japan’s Nikkei 225 rallied 1.18%, Taiwan TSEC 50 Index traded 0.51% higher, Hong Kong’s Hang Seng was up 0.46%, and China’s Shanghai SE Composite Index was up 0.08%.

Brent crude oil prices fell to $85.2 per barrel on Thursday morning from $88.2 during market close on Wednesday due to reports of the price cap on Russian crude oil being higher than expected.

The Rupee fell 18 paise to close at 81.85 against the US dollar on Wednesday.

US markets surge on possibility of US Fed slowing interest rate hikes

US markets closed on a positive note on Wednesday after the US Fed’s meeting minutes revealed that there is a possibility of slowing down the pace of interest rate hikes.

The Dow Jones Industrial Average (DJIA) closed 0.28% up at 34,194, while S&P 500 closed 0.59% up at 4,027. The tech-heavy Nasdaq gained 0.99% to close at 11,285.

The US markets will remain closed on Thursday on account of Thanksgiving and will close trading at midday on Friday on Black Friday.

Stocks to watch out for on Thursday

Tata Consumer: To acquire popular water brand Bisleri for about ₹7,000 crore.

Keystone Realtors: The real estate company which sells properties under the brand ‘Rustomjee’ is expected to debut on exchanges on Thursday. Overall, the ₹635 crore IPO received decent demand from investors amidst volatile market conditions, being subscribed 2.01 times.

Biocon: Entered into a semi-exclusive partnership with European pharma company Zentiva to commercialise Liraglutide, a drug combination for the management and treatment of Type 2 diabetes and obesity.

Glenmark Pharma: The US FDA has issued a warning letter for the company’s manufacturing facility in Goa.

Adani Power/Tata Power: Supreme Court has upheld Maharashtra Electricity Regulatory Commission’s award of a ₹7,000 crore contract to Adani Power, rejecting Tata Power’s plea against it.

Stocks in F&O ban

Punjab National Bank is in the F&O ban list today.

Source: NSE, as at 10:40 a.m., November 24, 2022

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