(Reuters) – Indian shares will likely open marginally higher on Thursday, after three sessions of losses on persistent foreign outflows and dull earnings, while consumer major Hindustan Unilever may drop on smaller-than-expected September quarter profit.
The Gift Nifty was trading at 24,540.5 as of 08:01 a.m. IST, indicating that the benchmark Nifty 50 will open slightly above its Wednesday’s close of 24,435.5.
The Nifty 50 has lost 1.7% in three sessions this week and is down about 6% since hitting record highs on Sept. 17, weighed down by foreign selling and largely lacklustre earnings.
The spotlight will be on Street’s reaction to Hindustan Unilever, given the Dove soap maker posted a smaller-than-expected earning after-market on Wednesday, weighed down by a slowdown in urban markets and higher costs.
“Bears continue to assert control as intraday bounces are consistently sold off,” said Rajesh Bhosale, equity analyst at Angel One.
“Traders should remain cautious and not be swayed by intraday bounces until positive signals emerge for markets.”
Asian markets opened lower, with the MSCI Asia ex-Japan index dropping 0.3%. Wall Street equities settled lower overnight amid investors’ reluctance to place major bets ahead of the U.S. presidential election. [MKTS/GLOB]
Foreign institutional investors were net sellers of Indian shares for the 18th straight session on Wednesday, redirecting funds to China on stimulus measures and relatively cheaper valuations.
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($1 = 84.0730 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy)
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