Positive opening seen for Nifty, Sensex

Indian markets are likely to see a flat-to-positive opening on Thursday amid mixed global cues. All eyes will be on Tata Consultancy Services results that will be out post market hours. Analysts estimate EBIT margins could contract by 140-160 basis points sequentially, primarily due to company-wide wage revisions implemented during the quarter, as well as a revenue shortfall. “We expect EBIT margin to decline sharply to 23.9 per cent, largely due to the annual wage hike effective April, partly offset by productivity improvements, operational efficiencies and favourable currency movements,” said Motilal Oswal Financial Services in its research note.

More than the numbers, the focus will be on management’s comments on its outlook for the rest of the year.

Meanwhile, Gift Nifty is ruling at 23,985, indicating marginal gains at open. Asian stocks are also up sharply in early deals on Thursday even as US stocks closed on a mixed note with Dow ending in the red and Nasdaq in the green.

Ponmudi R, CEO of Enrich Money, said Indian equity markets are expected to trade with a cautious undertone as geopolitical tensions in West Asia have escalated further. “Investor sentiment remains under pressure after the United States launched fresh strikes on Iran, with US President Donald Trump stating that the ceasefire is ‘over.’ The renewed military action has heightened concerns over regional stability and raised fears of potential disruptions to global energy supplies.”

Meanwhile, the Indian rupee has weakened to a one-month low, currently trading near the 95.5 level against the US dollar, as rising crude oil prices and heightened global risk aversion continue to weigh on the domestic currency.

Despite the uncertain global backdrop, Foreign Institutional Investors (FIIs) remained net buyers of domestic equities, investing ₹1,962.80 crore on Wednesday. “Indian markets have witnessed heightened volatility over the past 21 months, remaining largely range-bound and below their Sep’24 peak. While DII inflows have reached a record level of $162 billion during Oct’24-Jun’26, persistent FII outflows of $60 billion have been the key driver of market volatility since Oct’24, reflecting a cautious global stance toward India,” said Motilal Oswal Research in a note.

“However, with tensions in West Asia escalating further, market participants will be closely watching whether foreign investors maintain their buying momentum in the coming sessions, as sustained FII inflows will be critical to supporting domestic equities and helping the market sustain its upward momentum at higher levels,” he added.