Indian stocks to hold ground despite weak global sentiment
Nikkei, Kospi down sharply but analysts expect consolidation phase to continue
On Thursday, India's domestic markets are anticipated to commence trading around a flat level, with analysts anticipating a consolidation phase. The Reserve Bank of India (RBI) recently revised its GDP growth projection for the fiscal year 2027, increasing it to 6.7 per cent from the earlier estimate of 6.6 per cent. Additionally, the central bank lowered the forecast for Consumer Price Inflation (CPI) inflation for FY27 to 5 per cent, down from the earlier estimate of 5.1 per cent.
These positive macroeconomic indicators have contributed to a stable environment for India's financial markets. The Centre's financial position has also strengthened with over ₹30,000 crore set aside through the offer-for-sale of LIC shares.
Investors will likely adopt a cautious approach, as global markets show signs of instability. Nifty futures are currently trading at 24,660, marginally higher than their previous close of 24,637, indicating a flat-to-marginally positive opening for the Nifty index. Despite this, global stocks are experiencing volatility, impacting investor sentiment.
Ponmudi R, CEO of Enrich Money, noted that while the market is expected to exhibit a constructive bias, investors may remain selective due to mixed cues from the global economy, including the ongoing negotiations for a Middle East agreement.
The stable policy environment in India offers improved visibility on funding costs and interest rate expectations, enabling Non-Banking Financial Companies (NBFCs) to undertake more effective balance sheet planning and manage liquidity prudently. Derivatives experts highlight that the Indian VIX has declined to 12.06, signaling reduced volatility and increasing market confidence.
Option chain positioning reveals that maximum Put Open Interest is at the 24,500 strike, followed by 24,600, indicating immediate support through aggressive Put writing. Conversely, maximum Call Open Interest is concentrated at the 24,600 strike, followed by 24,700, highlighting a well-defined resistance zone. This boxed trading range between 24,500 and 24,700 is attracting active participation from both Put and Call writers, making it a critical area to monitor for potential directional shifts.
The Put Call Ratio (PCR) stands at 0.72, suggesting a mildly cautious outlook in the derivatives market, despite the improving technical structure.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
