Markets likely to get positive start following overnight gains on Wall Street; IT stocks to remain in focus post Accenture results

Indian markets ended at a fresh record high on Thursday, led by buying across the sectors and positive global markets. Today, markets are likely to get a positive start following overnight gains on Wall Street. Foreign fund inflows are likely to aid domestic sentiments. As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth ₹629.96 crore.

Sentiments will get a boost as a finance ministry report said India is set to achieve 6.5-7% GDP growth in the current financial year, as indicated by the movements in high-frequency indicators till August. The recent developments analysed indicate strong foundations of macroeconomic stability in India with steady growth, investment, employment and inflation trends, a strong and stable financial sector and a resilient external account, including a comfortable foreign exchange reserve position.

IT stocks

IT stocks will be in focus after Accenture raising its revenue guidance for FY25 to 3-6 %, exceeding its previous guidance.

There will be some buzz in sugar stocks as Food Minister Pralhad Joshi said the government is considering increasing the ethanol price for 2024-25 season as well as minimum selling price of sugar.

Tyre stocks

Tyre company’s stocks will be in focus as CRISIL Market Intelligence & Analytics report said that inflated natural rubber prices which are way above the trend in the past decade could impact the profitability of tyre manufacturers. It said Tyre makers are headed for a rough patch as the price of natural rubber has surged more than 33% on-year in just the first five months of this fiscal amid strong demand and crunched supply, which could strain profitability.

Pharma stocks

There will be some reaction in pharma and medical devices stocks as Arunish Chawla, secretary, Department of Pharmaceuticals (DoP), said India is set to add 50 new greenfield pharma manufacturing plants in the next two years under the Production-linked Incentive (PLI) scheme for pharma and medical devices.

Banking stocks

Banking stocks will be in limelight as CareEdge Ratings said net Non-Performing Assets (NNPAs) of scheduled commercial banks (SCB) saw a sharp decline, reducing by 24.9% y-o-y to Rs 1 lakh crore as of June 30, 2024.

The US markets ended higher on Thursday as Micron Technology shares rallied and a strong U.S. jobless claims report eased labor market concerns. Asian markets are trading mixed on Friday as Tokyo's core consumer price index (CPI) data for September, Japan's Foreign Bond investment for September, and China's industrial profits for August will be on investors' radar.