Business Recorder
Indian shares are set to open higher on Monday and snap recent losses linked to higher crude prices, as analysts assess stock-specific cues from quarterly earnings of Reliance and Axis Bank. GIFT Nifty futures were trading at 24,143.50 points, as of 8:15 a.m. IST, indicating that the benchmark Nifty 50 would open about 1% above Friday’s close of 23,897.95. Both benchmark indexes lost 2.7% each in the previous three sessions, as higher crude prices due to the Iran war crisis and weak earnings outlook by software companies such a and weighed on risk sentiment. Brent crude traded at roughly $107 a barrel after stalled US-Iran peace negotiations prolonged the disruption of Middle East energy exports, raising fears of global slowdown and inflation ahead of key central bank rate decisions. While sentiment remains subdued, there might be a temporary buying support on Monday for benchmark stocks on cheaper valuations following recent correction, two analysts said. Other Asian markets rose 1.5%, led by South Korean stocks tracking a rally in U.S. technology companies after strong results from Intel. Several high-profile technology-linked companies such as Amazon, Alphabet and Metawill report their quarterly results this week, which could impact the technology sector in Asia. Among domestic stocks, Reliance Industries will be in focus after the oil-to-telecom conglomerate missed quarterly profit expectations on Friday, pressured by higher input costs and supply disruptions linked to the Iran war. Private lender Axis Bank could also be in pressure after reporting a marginal drop in fourth-quarter profit over the weekend, impacted by lower income from treasury operations and higher provisions. Foreign portfolio investors (FPI) remained net sellers of Indian stocks for a fifth consecutive session on Friday, while domestic institutional investors (DII) bought domestic shares for the fifth session.
Go to News Site