Sensex, Nifty Set To Rally On Earnings Optimism

Indian shares look set to open sharply higher on Friday, with firm global cues and strong Hindalco Q4 results likely to underpin sentiment.

Aditya Birla group company Hindalco Industries said its consolidated March quarter net profit nearly doubled to a record on the back of a strong performance in its India aluminum business.

BPCL shares could also be in focus after the government called off the strategic sale of the state-run oil marketing firm.

Meanwhile, British brokerage Barclays said it expects the RBI to deliver another large interest rate hike in June, revise its inflation estimate higher and lower its FY23 GDP expansion target in the face of the uncomfortable inflation situation.

Benchmark indexes Sensex and the Nifty rose around 1 percent each on Thursday to snap a three-day losing streak on eve of F&O expiry.

The rupee slipped 2 paise to close at 77.57 against the dollar amid relentless capital outflows.

Asian markets followed Wall Street higher this morning and gold headed for a small weekly gain on dollar weakness, while oil slipped after surging to a two-month high on Thursday on signs of tight global supply.

U.S. stocks rose sharply overnight to extend gains from the previous session, as Elon Musk committed more cash to the Twitter deal, and retailers such as Department store operator Macy’s Inc, discount chains Dollar General Corp and Dollar Tree posted strong set of quarterly results and issued upbeat guidance.

Economic readings were mixed, with initial jobless claims falling more than expected last week, while first-quarter GDP contracted at slightly faster rate than previously expected and pending homes sales slipped in April.

The Dow climbed 1.6 percent, the tech-heavy Nasdaq Composite soared 2.7 percent and the S&P 500 rallied 2 percent.

European stocks also closed higher on Thursday, as the latest FOMC minutes offered no surprise on rates and Britain revealed new stimulus plans.

The pan European Stoxx 600 advanced 0.8 percent. The German DAX gained 1.6 percent, France’s CAC 40 index jumped 1.8 percent and the U.K.’s FTSE 100 rose 0.6 percent.