Indian equity markets are expected to open on a flat note on Wednesday amid rising volatility in global markets, ongoing geopolitical tensions in West Asia, and investor caution following the latest US inflation data.
Gift Nifty was trading 12 points, or 0.05 percent, higher at 23,435 at around 7:45 am, indicating a marginally positive start for domestic benchmarks.
Market participants remain cautious as escalating tensions in West Asia have increased concerns over a prolonged geopolitical conflict. Analysts said investors are avoiding risk-taking positions, resulting in continued selling pressure across global financial markets.
According to market experts, the market is likely to remain weak and volatile until there is greater clarity on international developments and stability in crude oil prices.
Global markets delivered mixed signals on Tuesday. US markets closed lower, with the S&P 500 and Nasdaq declining following higher-than-expected inflation data and continued global uncertainty. Investors stayed risk-averse despite firm corporate earnings.
Asian markets also showed mixed trends. Japan’s Topix closed marginally higher, while Australia’s S&P/ASX 200 and European futures declined. Overall, global cues remained subdued for equities.
Gift Nifty’s marginal gains indicate a largely stable opening for Indian markets. Analysts said investor sentiment may remain weak until geopolitical tensions in West Asia ease and crude oil prices stabilise. Foreign institutional investor activity could also remain under pressure due to geopolitical uncertainty, adding to market volatility.
Several companies across banking, energy, healthcare, and infrastructure sectors are scheduled to announce quarterly earnings on Wednesday. Key companies in focus include Cipla, TVS Motor Company, TVS Holdings, Hindustan Petroleum Corporation, Oil India, DLF, Power Finance Corporation, Metropolis Healthcare, NLC India and LIC Housing Finance.
The quarterly results of these companies are expected to influence market direction, particularly in the real estate, energy, and financial sectors.
In the pharmaceutical and healthcare segment, Dr. Reddy's Laboratories reported a sharp decline in quarterly profit, which could weigh on the pharma sector. Pfizer also reported lower profit, although revenue registered a marginal increase.
In the energy and power segment, Tata Power and Torrent Power reported mixed quarterly results, with both companies posting lower profit.
In the technology and consumer technology segment, Dixon Technologies reported lower profit despite an improvement in revenue, indicating mixed trends for the electronics manufacturing sector. Nazara Technologies reported growth in profit.
In the paints and consumer segment, Berger Paints reported increases in both profit and revenue.
In the infrastructure segment, Rail Vikas Nigam Limited emerged as the L1 bidder for EPC work from South East Central Railway, which is expected to support the company’s order book.
PNC Infratech announced a significant agreement under a dispute settlement scheme with NHAI, which may have an impact on the company’s financial position.
