Domestic markets are likely to open on a positive note even as analysts remain cautious. The SGX Nifty at 18,406 indicates another gap-up opening for domestic markets, as the Nifty futures closed at 18,345.

As global investors await clear cues on the US debt ceiling, analysts expect volumes to remain low. 

India’s turnaround

S Hariharan, Head Institutional Equity Sales, Emkay Global Financial Services, said: “Indian markets have disconnected from other markets in the region to erase the entire under-performance for YTD CY23 – this has been led by a meaningful jump in FII buying in both cash and futures segments.“

Earnings reported so far have mostly been in line with estimates, with a few positive surprises in the financial sector being offset by disappointments among IT companies, he said. He further mentioned that “both DIIs and Retail have been largely absent in terms of participation for the last 20 days.”

US stocks end mixed

Meanwhile, the US stocks closed on a mixed note, with Nasdaq surging over 1 per cent, Dow closing marginally lower and S&P 500 gaining 0.4 per cent. Asian stocks are, however, trading mostly lower.

Sentiment is likely to remain sluggish, as the US President Joe Biden failed to break a deadlock on the debt ceiling, said Deepak Jasani, Head of Retail Research, HDFC Securities.

Due to the result season, analysts expect the stock-specific action to continue.

Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd, said Global markets were subdued as worries loom over ongoing debt ceiling negotiation.

“Further, China’s shrinking imports, and slower export growth too casted doubt over the pace of the global economic recovery. We expect the market to remain in a range on account of global uncertainties, however, stock-specific action is likely to continue.”

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