Indian Shares Seen Flat To Lower At Open

Indian equities were poised for a lower opening on Thursday, mirroring regional markets as US inflation climbed faster than anticipated, heightening concerns of additional Federal Reserve interest rate hikes. This prompted overseas investors to offload Indian stocks for the 14th consecutive day, resulting in a record $32.7 billion outflow year-to-date.

Nifty futures hovered around 22,606.5 at 7:52 a.m. IST, signaling a potential negative start for the Nifty 50, which concluded at 22,622.7 on Wednesday. Hotter-than-expected US inflation compounded worries about tighter global monetary conditions, a sentiment that adversely affects risk assets like emerging market equities, according to traders.

Brent crude hovered near $104.5 per barrel as investors balanced supply concerns stemming from attacks on shipping through the Strait of Hormuz with US attempts to ease sanctions on petroleum ships. Domestic investors were likely to remain preoccupied with company earnings, with Wipro set to release its second-quarter results later that day.

Subsequent to HCL Tech's surprisingly strong earnings earlier in the week, which ignited a surge in tech stocks, markets would scrutinize Wipro's guidance on discretionary technology spending, deal conversions, and margins. Elevated primary-market activity could redirect liquidity away from the secondary market, potentially dampening near-term stock gains, two traders noted.

Jio Platforms announced plans on Wednesday to raise up to $3.2 billion through its anticipated largest-ever IPO, valuing the company at approximately $108.3 billion. The IPO's pricing band spanned 1,065 rupees to 1,119 Indian rupees ($11.19 to $11.76) per share.