* The Nifty 50 index has experienced a 6% decline, marking its worst monthly performance since the pandemic, driven by an imbalance in supply and demand dynamics.
* Increased equity supply, primarily from promoters and MNCs, has not been matched by demand, particularly from foreign portfolio investors (FPIs), raising concerns
Benchmark indices remained positive on Thursday due to optimistic investor sentiment following mild US inflation data, raising hopes for a potential Fed rate cut.
* On Friday, markets are anticipated to react to earnings reports from major companies such as Reliance, Infosys, and Axis Bank.
Infosys reported better-than-expected Q3 earnings, prompting brokerages to express optimism about a recovery in demand, particularly in European financial services and US retail segments.
* The company raised its revenue growth guidance for FY25 to 4.5-5%, with strong deal wins contributing to this positive outlook, leading brokerages like Bernstein and Nomura to maintain ‘buy’ ratings with price targets of Rs 2,330 and Rs 2,220, respectively
Wipro is expected to report a subdued Q3 with constant currency revenue declining, potentially making it the weakest performer among peers, while net profit is projected to rise by 12% YoY.
Reliance Industries reported a 7% YoY increase in consolidated net profit, reaching Rs 18,540 crore for Q3, surpassing market expectations.
Spot gold prices are stable at $2,715.21 per ounce, marking a potential third consecutive week of gains, driven by expectations of Federal Reserve interest rate cuts.
* Fed Governor Christopher Waller indicated that three to four rate cuts are possible this year if economic data continues to weaken, enhancing gold’s appeal as an inflation hedge.
