Domestic markets are expected to open on flat note amid weak global cues. According to analysts, the decent set of macro economic data (inflation and IIP) and foreign investors turning as buyers are key positives. ‘

Experts said that after sustaining gains for the eighth straight session, market may see a profit taking. Besides, the Q4 results of Tata Consultancy Services were slightly below market expectation. 

SGX Nifty at 17,860 indicates indicates a flattish opening as Nifty futures on Wednesday closed at 17,858.

Raghvendra Nath, Managing Director – Ladderup Wealth Management Private Ltd, said: CPI inflation eases to 5.66 per cent in March 2023 from 6.44 per cent in February 2023 and 6.95 per cent in March 2022. It is now below 6 per cent, the upper end of the target range set by RBI. The primary reason for the ease in inflation was higher base of last year. Rural inflation eased to 5.51% from 6.72 per cent in February, whereas Urban inflation also eased but at a slower pace to 5.89 per cent in March. “This data should aid RBI’s decision to pause the rate hike,” he said.

According to Madhabi Arora, Chief Economist at Emkay Global Financial Services, the RBI is now giving more weightage to the fluid global situation and policy repricing in the West, as against their past guidance that was anchored more to the domestic inflation dynamics. “We think the bar, to re-raise, is high and its pause will be for good. The ex-ante real rates are looking to be around 1.3% – keeping our one-year forward inflation forecast as the anchor – thus giving comfort and flexibility on the RBI’s supposed stance as well as actions ahead. The fluid global situation will demand frequent macro re-assessments, influencing the RBI’s pivot ahead,” she added.

Fluid global demand

Meanwhile, core India Industrial Production output came in at 5.6 per cent.

According to Rajani Sinha of Care Edge,While there has been slight improvement in IIP growth for February, output of some export-intensive sectors like Textile, Apparel and Leather products continue to bear the brunt of the global deceleration of demand. Moreover, contraction in the output of consumer durable goods for the third straight month is concerning.

“Going ahead, while overall industrial sector growth is likely to improve, we need to remain cautious of the global slowdown and uncertainties. While overall consumption is likely to improve, we could see some waning of pent-up demand in the months to come. Recovery in investment demand will be gradual in midst of the economic uncertainties,” Rajani Sinha said.

Meanwhile, Asian stocks are also down marginally in early deal on Thursday. Overnight, the US stocks after opening on strong note failed to sustain the gains, and ended weak.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: “Expectation of healthy Q4FY23 earning season and FIIs being net buyers to the tune of Rs.2800cr in month-till-date, helped domestic indices to gain strength. Nifty has been up ~4% in last eight trading session and we expect this momentum to continue going forward. Investors keenly await crucial inflation data from the US and India, along with FOMC meeting minutes to get further cues. IT companies would react to TCS results that will be announced on Wednesday post market closing.

Analysts expect some mid-cap and small-cap stocks will continue to see buying interest,

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