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Informist, Wednesday, Jun. 3, 2026

 

By Arundathi A R

 

MUMBAI – Bulls are expected to return to the domestic equity market Thursday after stock indices logged marginal losses on Wednesday. Investors will closely watch crude oil price trends, foreign institutional investor inflows, and macroeconomic data amid the war in West Asia, analysts said.

 

"Support from the global market may lift the market sentiment higher," Chandan Taparia, technical and derivatives research head at Motilal Oswal, said. He expects the Nifty 50 to trade between 23000 and 23650 on Thursday. The Nifty 50 settled 0.3% lower at 23405.60, down 77.95 points.

 

"We remain positive on domestic markets and foresee healthy double-digit gains going forward," ICICI Direct, the retail wing of ICICI Securities, said in its index outlook report Wednesday. The brokerage took a positive stance on the market due to expectations of easing geopolitical tensions, ongoing trade deals with major economies, and inexpensive valuations. It sees Nifty earnings-per-share estimates growing at a compound annual growth rate of 16?tween 2025-26 (Apr-Mar) and FY28, and pegs its 12-month rolling targets for the Nifty 50 at 28000 and the Sensex at 93000.

 

For the banking sector, ICICI sees margins facing some pressure in FY27 due to heightened competition on the liabilities side and the implementation of expected credit loss norms. For the information technology sector, the brokerage expects uneven near-term growth visibility across players. Valuations across IT services have turned relatively more supportive following the prolonged correction phase, according to ICICI Direct.

 

Meanwhile, US Ambassador to India Sergio Gor Wednesday said the interim trade agreement between the two countries should hopefully be finalised in the next several weeks. About 99% of the interim trade pact is in place and the remaining 1% is yet to be finalised, Gor said at the Citi India Conference 2026.

 

He also said the US is likely to release details of terms that will allow countries to reduce tariffs on their exports to the world's largest economy. The US Trade Representative on Tuesday proposed a 12.5% tariff on India and several other nations due to their failure to impose and effectively enforce a prohibition on the export of goods produced by forced labour.

 

According to a Bloomberg report, India plans to announce measures to attract foreign exchange inflows by reducing taxes on bond investments by foreign investors and removing caps on ownership of certain bonds as soon as this week. "The cabinet on Wednesday is expected to consider a significant cut in the taxes paid by global funds on the nation's bonds," the report said, citing sources.

 

The Organisation for Economic Co-operation and Development has raised its forecast for India's GDP growth in FY27 by 20 basis points to 6.3%, despite the sharp rise in energy prices and the war in West Asia. Inflation is expected to rise on the back of the oil price shock, which is seen pushing the Reserve Bank of India to raise interest rates temporarily in 2026, the OECD said.

 

Foreign investors net sold shares worth INR 83.63 billion Tuesday, up from INR 39.12 billion on the previous day. Domestic investors continued supporting the equity market by net buying shares worth INR 95.89 billion.

 

The Reserve Bank of India's three-day Monetary Policy Committee meeting, which started Wednesday, will be closely monitored by investors. "The next major reaction in the currency market is likely to come from the RBI policy decision on 5 June, where participants will closely watch the central bank's stance on inflation, liquidity, and currency stability," Jateen Trivedi, commodity and currency research analyst at LKP Securities, said in a note. The Indian rupee closed at a near two-week low of 95.7050 a dollar on Wednesday.  End

 

US$1 = INR 95.7050

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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