India’s benchmark equity indexes are set to open higher on Monday, with analysts attributing cheaper valuations after recent declines as a key trigger for investors buying the dip amid thin volumes ahead of the end of the year.
The GIFT Nifty futures were trading at 23,993 as of 7:36 a.m. IST, indicating that the benchmark Nifty 50 would open above Friday’s close of 23,813.4.
The Nifty 50 and BSE Sensex rose about 1 per cent each last week, after dropping about 5 per cent in the prior week as the US Federal Reserve’s projection of fewer rate cuts in 2025 tarnished the appeal for emerging markets.
While the recent declines have made valuations attractive, especially in large-caps, the upcoming December-quarter earnings season starting in the second week of January will play a crucial role in shaping the market trajectory, said two analysts.
Trading volumes on the Nifty 50 averaged around 180 million shares over the last four sessions, well below the average of 300 million shares this year.
Other Asian markets edged lower on Monday as higher US treasury yields weighed.
Foreign institutional investors offloaded stocks worth ₹1,323 crore ($155 million) on Friday, and were net sellers for the ninth consecutive session. In contrast, domestic institutional investors net bought equities for the last eight sessions.
Stocks to watch
** Two-wheeler maker Hero MotoCorp extends partnership with Harley-Davidson Motor
** JSW Energy to buy Temasek-backed O2 Power’s units for $1.47 billion
** Utkarsh Small Finance Bank approves sale of non-performing assets and written-off loans worth ₹355 crore at a reserve price of ₹520 million to ARC ($1 = 85.3880 Indian rupees)
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