Stock market set to track Asian peers higher

Stock market today: Domestic benchmark indexes are likely to open higher on Thursday, tracking a rebound in Asian peers after a steep sell-off in the previous session.

The GIFT Nifty GIFc1 was trading at 25,362.5 points, as of 8:03 a.m. IST, indicating that the NSE Nifty 50 index .NSEI will open above its previous close of 25,198.7 points.

The benchmark Nifty 50 snapped on Wednesday its longest winning streak during which the index hit all-time highs earlier in the week.

Lacklustre US economic data spurred slowdown concerns and weighed on global markets in the previous session.

Weak US labour market data and comments from a key Federal Reserve official bolstered the case for an aggressive interest rate cut, with the odds of a 50-basis-point cut on Sept. 18 rising to 45 per cent from 38 per cent a day before.

Asian markets rebounded on Thursday, with the MSCI Asia ex-Japan index .MIAPJ0000PUS gaining 0.5 per cent after a nearly 2 per cent slump on Wednesday. MKTS/GLOB

"Buying at every dip, even at record-high levels, indicates the resilience of domestic equities in the face of global volatility," said Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services.

Indian shares could extend gains given the liquidity surplus, according to analysts.

"Valuations no longer seem to worry people and surplus availability of liquidity means a quick rationalisation of any minor positive news flow as the next growth catalyst," said analysts led by Venugopal Garre of Bernstein.

Among individual stocks, Reliance Industries RELI.NS will be in focus. The oil-to-telecom conglomerate will consider a proposal for issue of bonus shares at a 1:1 ratio, its first such move since 2017.

The company also won a bid under an incentives programme, which supports EV battery production, according to a statement from the Indian government.

Stocks to Watch

Allied Blenders ALLE.NS: Allied Blenders to buy majority stake in a firm for manufacturing and marketing of premium spirits, and will invest Rs 700 million ($8.3 million) in the target company's securities.

General Insurance Corp of India GENA.NS: The Indian government will exercise oversubscription option in its sale of stake in the company.

Raymond Lifestyle RAYL.NS: Raymond's RYMD.NS lifestyle arm to begin trading on the bourses.