Nifty, Sensex poised for upbeat start on positive earnings

Stock market news: Benchmark indices are expected to open higher on Friday, buoyed by strong earnings reports from key Nifty 50 companies Bajaj Finance and IndusInd Bank.

GIFT Nifty futures, an indicator of the Nifty 50's opening, point towards a positive start. The Nifty 50 is expected to open above its Thursday's close of 22,570.35.

This week marks a continuation of the positive trend, with both the Nifty and Sensex indices gaining around 2 per cent in each session so far. This momentum is attributed to mostly in-line corporate earnings and a reduction in concerns about escalating tensions in the Middle East.

Domestic institutional investors (DIIs) have been net buyers for the past 11 out of 12 trading sessions. This buying spree has helped to offset the outflow of foreign investors, who are responding to rising US Treasury yields and fading hopes for near-term US rate cuts.

Domestic Sentiment Upbeat: Prashant Tapse, Senior Vice President of Research at Mehta Equities, attributes the market's strength to mostly positive earnings and anticipation of a majority win for the ruling party in upcoming elections. This optimistic outlook is encouraging domestic investors to enter the equity market.

Mixed Earnings Reports: While Bajaj Finance and IndusInd Bank surpassed analyst expectations with their quarterly profits, fellow Nifty 50 member Tech Mahindra disappointed with a miss. This continues the trend of underwhelming results from IT companies.

Tech Sector Pressured: The IT sector faces headwinds due to weak spending from US and European clients, coupled with diminished hopes for Federal Reserve rate cuts. These concerns intensified following hotter-than-expected core PCE data.

Asian Markets Upbeat: Asian markets are trading higher ahead of the Bank of Japan's upcoming monetary policy decision.

Stocks to Watch:

• L&T Technology Services: Met March quarter revenue expectations, bolstered by strong deal wins.
• UTI Asset Management: Reported a rise in consolidated net profit for the March quarter.
• InterGlobe Aviation: Placed an order for 30 Airbus A350 wide-body aircraft, indicating a focus on long-haul routes.

Key earnings reports expected today include HCLTech, Maruti Suzuki India, and Shriram Finance.

(With Reuters inputs.)