Nifty and Sensex are expected to rally with a worldwide market recovery, with real estate equities in focus

Summary: As of 8:30 am, the GIFT Nifty was trading at 24,309.5 points, indicating that the NSE Nifty 50 will begin higher than Tuesday's finish of 23,992.55.

As traders reevaluate their concerns over a possible US recession, Indian shares are expected to climb higher on Wednesday, in line with a rebound in Asian markets. As a result of rumors that the long-term capital gains (LTCG) indexation proposal may be revised, real estate stocks are predicted to be in high demand.

As of 8:30 am, the GIFT Nifty was trading at 24,309.5 points, indicating that the NSE Nifty 50 will begin higher than Tuesday's finish of 23,992.55.

Tuesday's major indexes, the S&P BSE Sensex and the Nifty 50, opened higher and gained roughly 1.2% before traders cashed in on their gains. Both indexes have dropped by about 4% during the last three sessions.

"We expect the markets to remain under pressure until the global volatility subsides. The ongoing results season and the Reserve Bank of India's (RBI) monetary policy will further add to the volatility," says Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

A Reuters poll indicates that the RBI will likely keep interest rates at current levels on Thursday for the eighth straight meeting, provided that inflation stays over 5% in June.

Avinash Gorakshakar, head of research at Profitmart Securities, noted, "While the rate pause is priced in, markets will take any dovish commentary from the Reserve Bank of India as a positive, but at elevated valuations, upside potential for the markets is capped."

Asian markets opened the day on the upward side, with Japan's Nikkei 225 adding 2.7% and the MSCI Asia ex-Japan index increasing 1.3%. Overnight, Wall Street stocks also spiked, recovering from Monday's severe sell-off, as remarks from influential Federal Reserve members eased fears of a US recession.

As traders evaluate claims that the government may change the Finance Bill to allow taxpayers to select between a 20 percent LTCG tax with indexation or a 12.5% LTCG tax without indexation for property purchased before July 23, 2024, India's real estate companies are expected to benefit. Finance Minister Nirmala Sitharaman is likely to introduce the amendment later today.

Stocks to watch: 

• Lupin's net profit for the June quarter exceeded expectations.
• Tata Power's June-quarter profit exceeds estimates owing to summer and industrial demand.
• The country's primary inquiry agency has charged Hindalco Industries with suspected corruption in getting environmental clearances for coal mining between 2011 and 2013, according to the Press Trust of India.
• Gland Pharma reports a surprising drop in its June-quarter profit because of high labor costs and reduced prices for its products in the United States.

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