INDIA STOCKS-India's Nifty set to open at a fresh record high

Credit: REUTERS/Niharika Kulkarni

BENGALURU, March 4 (Reuters) - India's benchmark Nifty 50 is set to open at a fresh record high on Monday, aided by strong domestic economic growth, and tracking Asian peers after U.S. data and comments from Federal Reserve officials aided hopes of interest rate cuts in June.

India's GIFT Nifty GIFc1 was trading at 22,523 as of 8:13 a.m. IST, indicating that the Nifty 50 .NSEI will open above its Saturday's close of 22,378.40.

Both the Nifty and BSE Sensex .BSESN hit record highs for two straight sessions after data showed the Indian economy grew at 8.4% in the October-December period, the fastest pace in six quarters.

The total market capitalisation of all the National Stock Exchange-listed Indian stocks is at a record $4.72 trillion.

"The benchmark indexes have surged to record highs, propelled by stellar GDP data and a healthy performance in manufacturing sector," said Vinod Nair, head of research at Geojit Financial Services.

He, however, added that corrections in mid- and small-caps could continue, with regulators urging disclosures of associated risks to asset management companies.

While the blue-chip indexes hit record highs, the broader, more domestically focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 declined last week, before recouping some of the losses in the special trading session on Saturday.

The drop in the segments came after Reuters reported that India's market regulator asked money managers to consider restricting investments in small- and mid-cap stock mutual funds on rising concerns over excessive fund inflows.

Since the beginning of 2023, small- and mid-caps have gained 65% and 54%, compared with a 23% rise in the Nifty 50.

Asian markets opened higher on the day. Wall Street equities closed higher on Friday after weak U.S. economic data and comments from Fed officials kept intact the expectations of interest rate cuts in June. MKTS/GLOB

Foreign investors net sold shares worth 818.7 million Indian rupees (~ $10 million) on Saturday, while domestic institutional investors offloaded shares worth 447.1 million rupees.

STOCKS TO WATCH:

** HG Infra Engineering HGIN.NS: Company got letter of acceptance from South Central Railway for a project worth 4.47 billion rupees.

** Moil MOIL.NS: Company's manganese ore production increased 15% year-on-year in February.

** Patel Engineering PENG.NS: Company's joint venture received letter of acceptance from Telangana state government for a contract worth 5.25 billion rupees.

** Ami Organics AMIO.NS: Company got patents for two inventions, for a period of 20 years.

($1 = 82.8490 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sohini Goswami)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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