Indian shares expected to rise on steady earnings and lower oil prices
GIFT Nifty futures indicate a positive start for the benchmark index following three sessions of gains and foreign investor inflows.
Indian equity markets are expected to open higher on Tuesday, continuing a three-day winning streak, according to a report by Mint. Investor sentiment is being supported by strong corporate earnings, declining crude oil prices, and signs of returning foreign investors.
The Nifty 50 index closed at 23,440.8 on Monday, while GIFT Nifty futures stood at 23,523.5 as of 8:05 a.m. IST. On Monday, both the Nifty 50 and the BSE Sensex rose 1.7 per cent, reaching their highest points in over five weeks and eight weeks respectively.
Brent crude remained steady at approximately $105 a barrel after a 7 per cent drop in the previous session. While talks between Iran and Qatari mediators raised hopes for ending the US-Israeli war with Iran, reports of US strikes on Iran's Qeshm Island have kept tensions high.
Provisional data from the NSE shows foreign portfolio investors were net buyers on Monday with inflows of Rs 31.15 billion. Conversely, domestic institutional investors recorded net sales of Rs 3.92 billion.
Enrich Money CEO Ponmudi R said that a sustained de-escalation in geopolitical tensions and moderation in energy prices could support the recovery, though a breakdown in negotiations could revive volatility.
In corporate news, Marico is in focus after exceeding quarterly profit expectations. Granules India reported a nearly 40 per cent rise in September quarter profit, while Dr. Reddy's stated the US FDA has tentatively approved a generic version of a new HIV prevention drug.