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India’s benchmark indexes are likely to open little changed on Thursday amid escalating tensions with neighbour Pakistan and as the US Federal Reserve said that risks of higher inflation and unemployment have risen due to the global trade war.
The Gift Nifty futures were trading at 24,422, as of 7:52 a.m. IST, indicating the Nifty 50 will open around Wednesday’s close of 24,414.4.
Pakistan vowed to retaliate against Indian air strikes on Wednesday that came in the aftermath of an attack by Islamist militants on tourists that killed 26 people in Kashmir last month.
India told more than a dozen foreign envoys in New Delhi that “if Pakistan responds, India will respond,” fuelling fears of a larger military conflict in one of the world’s most dangerous – and most populated – nuclear flashpoint regions.
Investors and analysts say the latest conflict between India and Pakistan may not severely impact New Delhi’s efforts to pitch itself as a safe haven for foreign investors amid global economic turmoil.
Foreign investors bought Indian shares for a fifteenth consecutive session on Wednesday, as per provisional data, marking their longest buying streak in two years. They have bought 450.55 billion rupees ($5.3 billion) of stocks in that period.
“While short-term fluctuations are expected, India’s market resilience is evident. Investors should consider sectors aligned with government priorities, particularly defence and national security, which are likely to offer opportunities in the months ahead,” said Vikram Kasat, head – advisory at PL Capital.
Asian markets were also muted on Thursday, with the MSCI Asia ex Japan trading flat, after the Federal Reserve held interest rates steady as expected.
The US central bank said the risks of higher inflation and unemployment had risen, further clouding the US economic outlook as its policymakers grapple with the impact of President Donald Trump’s tariffs.
Higher inflation in the US may keep the Fed from cutting rates, which does not bode well for emerging markets like India.
STOCKS TO WATCH
** Coal India posts 12% growth in fourth quarter profit even as its revenue dropped due to subdued power demand
** Dabur India reports a drop in profit in the March quarter due to sluggish urban demand, although it expects a recovery in the coming months
** United Breweries posts higher profit on solid demand for higher-priced beers and lower excise duty costs
Published on May 8, 2025
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