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Informist, Thursday, Jul. 9, 2026

 

By Arundathi A R

 

MUMBAI – Analysts expect positive sentiment to persist in the domestic equity market after the benchmark indices closed marginally higher Thursday despite the fresh escalation in the West Asia conflict. Crude oil prices below $80 a barrel are likely to attract foreign investment inflows into the domestic equity market, supporting further gains in the indices in the coming days.

 

"Valuations are no longer a concern for Indian equities now, and also growth is coming back," said Ashwini Shami, president and chief portfolio manager at Omniscience Capital. According to him, AI trade is maturing and showing signs of saturation, having already attracted a large share of global fund flows. "So, that way, India has a good chance to attract capital going forward, because our domestic story is anyway strong," he said.

 

According to Elara Securities (India), liquidity in equity, commodity, and energy markets is declining after recent record inflows. It said the "exceptional" momentum of inflows in US allocations is likely beginning to moderate. It also said high redemptions in emerging markets could be a sign that allocations in such markets may have begun to lose traction with the artificial intelligence trade.

 

On Wednesday, foreign institutional investors net bought shares worth INR 19.63 billion, while domestic investors net bought shares worth INR 7.90 billion. Foreign investors turned net buyers after four straight months of selling. Meanwhile, domestic investors continued buying for the sixth consecutive session.

 

"The immediate support levels have shifted lower to 23800 and 23500," Sundar Kewat, technical and derivatives analyst at Ashika Institutional Equity Research, said. "As long as the Nifty holds above 23800, the broader trend remains constructive, and any decline towards this level could present a buying opportunity."

 

On Thursday, the Nifty 50 closed at 23962.80, up 80.75 points or 0.3%. The BSE Sensex ended at 76741.82, up 238.22 points or 0.3%. "Domestically, sentiment remains relatively resilient, underpinned by an improved outlook for H2, a recovery in rainfall conditions, and better valuation levels," Vinod Nair, head of research at Geojit Investments, said in a note.

 

Shami of Omniscience said he doesn't have a very strong outlook for IT stocks for this earnings season. "The growth outlook for FY27 will still remain a low single digit on a constant currency basis," he said. He expects IT companies to take some more quarters to improve their earnings growth.

 

Elara Securities expects the cumulative net profit of Nifty 50 companies to grow by 15% in each of FY27 and FY28. "FY27 could be a tale of two halves: H1 may absorb the cost shock, while H2 may benefit from normalisation, provided the global backdrop is stable," according to the brokerage's strategy report.

 

While the brokerage sees the companies under its coverage posting a cumulative on-year sales growth of 19%, supported by strong automobile and consumer discretionary volumes and double-digit growth in fast-moving consumer goods volumes, cumulative net profit growth is likely to decline by 5%, largely due to losses in oil marketing companies. Meanwhile, excluding oil marketing companies, net profit growth is expected to rise nearly 14%, the brokerage said.

 

Elara estimated the Nifty 50's earnings per share to grow by around 15?ch in FY27 and FY28. It sees FY27 as a bridge year to a broader profit upcycle in FY28. "If relief in commodities, no further supply disruption, resilient demand and stable rates prevent further earnings estimate cuts, Nifty can transition from a macro-relief rally to an earnings-led compounding phase," it said in the report.

 

Meanwhile, the Asian Development Bank on Thursday cut its projection for India's GDP growth to 6.6% in FY27, down from 6.9?rlier. The multilateral agency retained its FY28 GDP growth forecast for India at 7.3%. ADB raised India's CPI inflation forecast to 5.2% for the current financial year, up 70 basis points from its earlier projection.

 

Shares of Tata Consultancy Services will be in focus after the company reported its June-quarter results in post-market hours Thursday. The company posted a consolidated net profit of INR 133.49 billion, slightly below the Street's view of INR 134.03 billion. The IT major's revenues for the quarter stood at INR 722.75 billion, exceeding expectations of INR 718.05 billion. The company's net profit fell as total expenses rose faster than revenue. A one-time charge associated with the settlement of a legal claim partly dragged down the company's bottom line.  End

 

US$1 = INR 95.39

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

 

Edited by Saji George Titus

 

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