Indian shares set to open higher on improved global cues, FII buying

Posted on by

Indian stocks are set to open slightly higher on Tuesday, after rallying in the previous session, as global signals on progress in US debt ceiling talks improved.

Futures for Singapore-listed Indian NSE shares were up 0.15 percent at 18,362.50 as of 8:11 am IST. Most Wall Street stocks closed higher on Monday after debt ceiling talks resumed in the United States.

While no deal can be reached, both President Joe Biden and Republican House Speaker Kevin McCarthy have vowed to continue negotiations to reach consensus, with just 10 days to go before a potential default.

Analysts have warned that failure to raise the debt ceiling will not only lead to defaults, but also lead to higher interest rates. Asian markets were mostly higher.

Indian stocks extended gains for the second consecutive session on Monday, supported by information technology and metals stocks.

In a report on Monday, Credit rating provider S&P Global Ratings He said Indian IT companies have “good defenses against downside risk”, and cited strong balance sheets, high recurring cash flows and an executive record as reasons for the positive view.

Foreign Institutional Investors (FIIs) resumed buying Indian shares on Monday, buying $112.9 million worth of shares.

“Consistent foreign buying has broadened Nifty’s footprint,” said Deepak Jasani, Head of Retail Research at HDFC Securities. “18,218-18,432 could be the Nifty Band in the near term.”

The Nifty 50 has gained nearly 3 percent since the start of the March quarter earnings season on April 12. The rally was also supported by foreign portfolio investors (FPI) buying of local stocks, which hit a six-month high in the first half. May.

Stocks to watch:

  • JSW Steel Ltd: The company has signed a basic agreement with Japan-based JFE Steel to establish a joint venture to manufacture grain-oriented cold-rolled electrical steel in India.
  • Shree Cement Ltd: The company reported a 15 percent drop in fourth-quarter profit due to higher input costs.
  • Bharat Petroleum Company Limited: The company reports an increase in net profit for the March quarter.
  • Indiabulls Housing Finance Limited: Combined shares decreased in consolidated net profit in the March quarter.