Nifty 50 to open lower; HDFC Bank in focus

Nifty 50 to open lower: The Nifty 50 index is poised to open lower on Thursday, influenced by the latest US data diminishing expectations of an early rate cut in March. 

Additionally, HDFC Bank's US-listed shares recorded a decline overnight, indicating sustained selling pressure.

As of 8:18 am, GIFT Nifty was trading at 21,404, suggesting an opening below the Wednesday close of 21,571.95. 

The previous day witnessed the Nifty 50 and Sensex posting their worst session in 19 months, primarily driven by an 8.44 per cent drop in HDFC Bank's stock due to concerns over stagnant margins.

HDFC Bank's US-listed shares extended their post-earnings decline for a second session, further fuelling apprehensions of a continued slide. Wall Street also closed lower after robust retail sales data for December tempered early rate cut expectations.

The likelihood of a 25 basis points rate cut in March decreased to 59.6 per cent, down from 63.1 per cent the previous day, according to CME's FedWatch tool. 

Asian markets showed subdued performance, influenced by a 2.3 per cent drop on Wednesday following China's economic growth missing expectations in the December quarter.

Investors are now attentive to the results of Nifty 50 constituents, including IndusInd Bank, Reliance Industries, Hindustan Unilever, and Ultratech Cement, scheduled for Thursday and Friday.

Foreign institutional investors (FIIs) sold shares worth a net Rs 10,578 crore ($1.27 billion) on Wednesday, while domestic institutional investors (DIIs) bought shares worth Rs 4,006 crore.

Stocks to watch 

Mahindra & Mahindra: Company's unit signed contract to manufacture and deliver metallic components for all Airbus commercial aircraft models.

NHPC: Government will sell up to 3.5 per cent stake in the company through an offer for sale (OFS), at a floor price of Rs 66 per share, a discount of 10 per cent on closing price on Wednesday.

Asian Paints: Top paint maker reported better-than-expected rise in December quarter profit on strong decorative business.

LTIMindtree: IT company posted smaller-than-expected profit in the third quarter on weak demand, furloughs. 

(With Reuters Inputs)