Thanks to a strong global cues, Indian stock markets are expected to continue the rally. Analysts, though cautious, said markets now discounted most of the negative news. On the positive note, easing inflation and slowdown in foreign portfolio investors selling strengthen the market. Unless, for any unexpectd negative development, the current bullish momentum is likely to continue for a few days, they added.

However, from now on, Q1 results of FY23 will direct the market momentum. Tata Consultancy Services would be the first major company to declare its quarterly financial performance on Friday. Analysts say this will give clear signals about India Inc's performance, they added.

SGX Nifty, global stocks rule firm

SGX Nifty at 16,260 indicates 100 points gap up opening for Nifty. Nifty futures on Thursday closed at 16,148.15. Most equities across Asia too gained about 1 per cent.

Overnight, the US stocks closed on strong note with Dow and S&P 500 gaining 1.1 per cent and 1.50 per cent, respectively. Tech-laden Nasdaq surged 2.3 per cent.

Reports that China is planning $75 billion infrastructure fund to revive economy also lifted sentiment across the globe.

"Negatives discounted"

"Domestic bourses mirrored an upbeat mood in global equity markets as investors digested the latest FOMC minutes while falling crude and commodity prices lifted investor sentiments. This upside momentum could dominate the markets in the near-term, underpinned by hopes of reducing inflation. The RBI’s latest slew of measures to boost foreign exchange inflows is expected to aid the tumbling rupee," said Vinod Nair, Head Of Research at Geojit Financial Services -

According to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, after the sell-off in recent months, valuations are now off their peak and this is giving investors some room to pick & choose stocks which are fundamentally sound despite the prevailing negative sentiment.

Published on July 8, 2022