(Reuters) – Indian stocks are poised for a cautious start on Friday at the end of a tough week in which foreign investors pulled back on fears of a slowdown in economic and corporate growth, with TCS in focus after the IT major met quarterly profit estimates.
GIFT Nifty futures were trading at 23,586 as of 7:58 am IST, indicating that the blue-chip Nifty 50 will open close to Thursday’s close of 23,526.5.
The Nifty 50 and 50 have lost about 2% each so far this week on continued overseas outflows amid fears of a slowdown in corporate earnings, as well as the growing potential for fewer US interest rate cuts, making emerging markets a less attractive investment.
Foreign portfolio investors were net sellers in six of the seven sessions in January, with outflows of $2.2 billion.
Tata consulting services (NS:) reported roughly flat third-quarter results, kicking off quarterly earnings season, and gave what analysts said were encouraging signs of a revival in client spending, particularly in the key U.S. market.
Still, while IT companies expect to benefit after Donald Trump becomes US president as it erases political uncertainty, emerging markets have generally been hurt by concerns that his tariff plan could fuel inflation and, consequently, slow the pace of rate cuts in the US.
Other Asian markets were lower on the day.
PROFITABLE SHARES
** Engineering and technology services firm Tata Elxsi reports a decline in profit in the December quarter
** GTPL Hathaway reports a decline in net profit for the December quarter
** Surya Roshni (NS:) wins order worth Rs 814.7 crore from BPCL for city gas distribution project
