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Market Outlook: Resurgent Covid to counter Q3FY22 results positive effect on equities

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Upcoming Q3FY22 quarterly results season, along with release of macro-economic data points on industrial production and inflation, will determine the trajectory of key domestic equity indices next week.

However, global cues such as high crude oil prices, combined with the direction of foreign fund flows and the rising surge in domestic Covid cases will impact investors’ risk-taking appetite.

“A gradual pick up in volumes including from FIIs and DIIs along with stable domestic cues and release of advanced estimates of a rise in FY22 GDP by 9.2 per cent portend well for the near term,” said Deepak Jasani, Head of Retail Research, HDFC securities.

“17,944-17,655 could be the range for the Nifty in the near term.”

Besides, the Q3FY22 earnings result season will be kicked-off from next week.

As per schedule, IT majors such as Infosys, TCS and Wipro are expected to be the first bluechip firms to come out with their respective Q3FY22 earning results.

Furthermore, other companies like Mindtree, HCL Technologies and HDFC Bank are expected to announce their quarterly results in the coming week.

“Going ahead, next week, an expected strong earnings delivery by the IT sector would hold the key to drive markets,” Siddhartha Khemka, Head of Retail Research, Broking and Distribution for Motilal Oswal Financial Services.

“Global cues were positive on hopes of steady recovery as well as return of FIIs will be other major factors for the market.”

Furthermore, he said that going ahead, market trend might become volatile in the near term on account of potential risk from Omicron variant, upcoming budget and fragile global cues.

Apart from the Q3FY22 results, investors will look out for the upcoming macro-economic data points such as the IIP (Index of Industrial Production) and Balance of Trade figures.

“The coming week will be driven by the trends in the initial earnings outcome with the IT sector in focus,” said Vinod Nair, Head of Research at Geojit Financial Services.

“It is also a busy week in terms of the release of macroeconomic data points like inflation data for December and manufacturing and industrial production data for November.”

The Central Statistics Office is slated to release the macro-economic data points of IIP and CPI on January 12.

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57 pc Indian office occupiers say AI not affecting leasing decisions

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New Delhi, Aug 27: Despite the growing weight of artificial intelligence (AI) in corporate strategy, 57 per cent of office occupiers in India said it has no material impact on their leasing decisions, a report said on Thursday.

The report from CBRE South Asia said about 93 per cent of over 200 occupiers surveyed are at some stage of AI implementation, but roughly 59 per cent remain in early or exploratory phases testing proofs‑of‑concept and mapping systemic changes before committing capital or restructuring physical assets.

AI is at an advanced or scaled adoption stage for a third of the cohort, driving immediate changes in how talent is deployed and physical workspaces are utilised, the report said.

While a majority do not expect immediate changes to leasing strategies, occupiers are likely to prioritise high‑quality workplaces that support talent attraction, innovation and advanced technology needs, the report added.

A large proportion of organisations are likely to plan their real estate decisions based on their workforce dynamics and business impact of their AI strategies.

Meanwhile, a section of occupiers anticipated AI creating new opportunities for workforce growth as organisations scale emerging capabilities and technology-led functions.

“While AI adoption is becoming increasingly widespread, business maturity and the pace of deployment will ultimately determine its impact on workforce requirements and, consequently, future leasing decisions,” said Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East and Africa, CBRE.

“As organisations continue to transition from experimentation to scaled implementation, the implications for headcount, workplace strategies, and space demand are likely to evolve over time,” he added,

Ram Chandnani, Managing Director, Leasing Services, India, CBRE said that the flight-to-quality trend remains firmly intact, with premium workplaces continuing to play a critical role in attracting and retaining talent.

“In effect, AI is influencing the type of space occupiers seek well before it alters the quantum of space they require,” he added.

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CM Patel returns from US-Canada tour; says investors keen to invest in Gujarat

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Ahmedabad, Aug 27: Gujarat Chief Minister Bhupendra Patel returned to Ahmedabad on Thursday after completing a nine-day visit to the United States and Canada aimed at attracting global investment and promoting the 2027 Vibrant Gujarat Global Summit, saying companies across key sectors had shown interest in investing in the state.

Patel was welcomed at Ahmedabad airport by Deputy Chief Minister Harsh Sanghavi and senior state government officials following his visit from August 17 to 26.

The overseas outreach focussed on investors, technology leaders, entrepreneurs and the Gujarati diaspora in San Francisco, Washington, DC, New York and Toronto.

Speaking to reporters after his return, Patel said the state government’s objective was to ensure that a larger share of investment coming into India was directed towards Gujarat.

“We have witnessed the impact of Prime Minister Narendra Modi’s global relationships and the trust he enjoys during this visit. Because of the complete trust people have in the Prime Minister, investors are keen to make greater investments across various sectors,” he said.

Patel said the delegation had held meetings with major companies and investors in semiconductors, artificial intelligence, data centres and manufacturing, as well as financial companies in connection with GIFT City.

He said the response to the meetings had been encouraging. “Many companies are enthusiastic about investing in Gujarat. Very good investment will come to Gujarat,” he said.

The visit was undertaken as part of Gujarat’s preparations for the 11th Vibrant Gujarat Global Summit, which is scheduled to be held from January 10 to 12, 2027.

During the overseas programme, global investors, technology leaders and innovators were invited to participate in investment, collaboration and partnership opportunities at the summit.

The delegation also engaged with members of the Gujarati diaspora. In Canada, Patel met entrepreneurs and business representatives and invited the community to invest in Gujarat and participate in the forthcoming summit.

The delegation was led by Patel and Chief Secretary M.K. Das. It included Additional Chief Secretary of Finance Department, T. Natarajan; Additional Chief Secretary of Industries and Mines Department, Mamta Verma; Principal Secretary to the Chief Minister Sanjeev Kumar; and Additional Principal Secretary to the Chief Minister Dr Vikrant Pandey.

Representatives of Gujarat’s industrial and business community also accompanied the delegation.

The meetings were held with investors, technology leaders, young entrepreneurs, innovators and members of the Gujarati diaspora across the three US cities and Toronto.

Discussions covered investment opportunities and partnerships in emerging technologies and industrial sectors, with the state also seeking participation from international companies in the 2027 summit.

After the delegation returned to Gujarat, senior officials gathered at Ahmedabad airport to welcome Patel, Das and other members of the delegation.

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Sensex, Nifty post mild uptick over easing crude prices

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Mumbai, Aug 27: The Indian equity markets posted a mild uptick early on Thursday as oil prices edged down on expectations of Iran-Oman talks over opening the Strait of Hormuz.

As of 9.18 am, Sensex added 81 points, or 0.10 per cent, to reach 77,553 and Nifty gained 37 points, or 0.16 per cent, to reach 24,425.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 added 0.31 per cent, and the Nifty Smallcap 100 gained 0.24 per cent.

All sectoral indices on NSE traded in green except Nifty Media. Nifty IT was the top gainer up 0.42 per cent.

Brent crude eased 0.6 per cent to $87.30 a barrel after Iran informed about discussions with Oman to finalise the Strait of Hormuz-related agreement, easing concerns over prolonged oil supply disruptions in West Asia.

“The near-term bias remains cautious and range-bound, with mixed Asian markets and subdued global cues keeping investors watchful. The focus remains on inflation, bond yields and ongoing geopolitical developments, while easing crude prices could provide some support to Indian equities,” an analyst said.

The immediate support for Nifty is placed at 24,000–24,050 level. On the upside, the 24,350–24,400 zone remains a key hurdle for the bulls, market participants said.

In Asian markets, China’s Shanghai index gained 0.63 per cent and Shenzhen added 1.17 per cent. Japan’s Nikkei lost 0.15 per cent, and Hong Kong’s Hang Seng Index eased 0.47 per cent. South Korea’s Kospi added 2.01 per cent.

Overnight, Wall Street ended mixed-to-lower as investors assessed Nvidia’s earnings and renewed concerns over US inflation, while early Asian markets are trading mostly higher.

The US markets ended in red overnight as Nasdaq lost 0.08 per cent. The S&P 500 shed 0.02 per cent, and the Dow Jones dipped 0.21 per cent.

On August 26, foreign institutional investors (FIIs) net bought equities worth Rs 502 crore, while domestic institutional investors (DIIs) bought equities worth Rs 6,425 crore.

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