Flat opening seen for Nifty, Sensex
Analysts say attention is shifting to Q2 results, inflation data, and monsoon progress
Indian stock markets are expected to open flat to negative on Monday, despite a strong closing on Friday. Analysts are focusing on Q2 results from India's companies and inflation figures, as well as the progress of the monsoon season. Ajit Mishra, SVP of Research at Religare Broking, notes that while the recent 25-basis-point rate hike was expected, the move from a neutral stance to a calibrated tightening has raised concerns about borrowing costs and potential further policy action.
The upward revision in FY27 GDP growth forecast has provided some confidence in the domestic economy, but global factors such as US Treasury yields, Federal Reserve policy uncertainty, geopolitical risks, and crude oil prices continue to influence market sentiment. With Nifty trading at 22,646 at the opening bell, the week may see a flat opening.
Analysts at Emkay Global Research are optimistic about Indian corporate earnings for Q2FY27, projecting 24.8% topline growth and 21.6% PAT growth. However, earnings breadth is narrowing, with only 54% of companies expected to deliver PAT growth above 10%, compared to 67% previously. Macro headwinds, including high energy prices and a widening current account deficit, are weighing on sentiment, contributing to a ~10% correction since mid-August 2026.
Investors are expected to monitor September CPI and WPI inflation data, as well as Q2 FY27 earnings season results from key companies like HCL Technologies, Hero MotoCorp, Tech Mahindra, Wipro, and Nestle India.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
