Indian shares likely to consolidate after foreign inflow-driven rally
Indian shares are expected to open little changed on Thursday , as benchmark indexes look to consolidate after a sharp rally driven by sustained foreign fund inflows, lower crude oil prices and a cooling global AI trade. GIFT Nifty futures were at 25,270 as of 8:00 a.m. IST, indicating a muted start for the benchmark Nifty 50, which ended at a more-than-eight-month closing high of 25,255.05 on…
Indian equities appeared poised for a brief pause on Thursday as markets digested a surge fueled by foreign fund inflows, falling crude oil prices and an easing global AI trade. The Nifty 50 index, India's benchmark, was trading at 25,270 in early trading, marking a subdued opening following its eight-month high of 25,255.05 on Wednesday.
During the day's trading, foreign portfolio investors purchased $6.43 billion worth of Indian shares in November, their largest monthly buying spree since September 2024, according to provisional data. This robust inflow of capital has lifted the Nifty 50 and Sensex indexes by 9.6% and 10% respectively in the month of November. The rally represents a stark contrast to the lagging performance of Indian equities over the past two years due to high oil prices and restricted exposure to the global AI-driven market rally.
Brent crude futures slipped more than 1% to $91.8 per barrel on optimism regarding peace talks in the Middle East and the Russia-Ukraine conflicts. However, the US 10-year Treasury yield hovering near 4.99% and the market's sustained rally might curb immediate upside, according to Hariselvan Radhakrishnan, founder and CEO of HST Wealth.
MSCI's Asia-Pacific index excluding Japan fell by 0.1%, dragged down by shares in Hong Kong. Shares in Adani Green Energy, Coforge, Life Insurance Corporation of India, and Meesho are set to attract attention after MSCI incorporated them into the MSCI India index, while PI Industries was removed.
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