Indian shares likely to open flat on mixed global cues ahead of key earnings
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Indian shares are set to open little changed on Tuesday, after hitting record highs for two sessions in a row, amid mixed global cues.
India's GIFT Nifty on the NSE International Exchange was down 0.05% at 19,769 as of 7:42 a.m. IST.
Both the Nifty 50 and the Sensex hit fresh highs on Monday, powered by Reliance Industries ahead of the demerger of its financial services unit and HDFC Bank after strong June-quarter results.
"The rally came despite weakness in European markets and a mixed ending in key Asian gauges," said Shrikant Chouhan, head of research (retail) at Kotak Securities.
Wall Street equities closed higher overnight on strong earnings outlook and easing concerns over inflation. Asian markets, however, edged lower, with the MSCI Asia ex Japan losing 0.6%, dragged by weak macroeconomic data from China. [MKTS/GLOB]
"While the market is bullish, it is in an overbought zone and hence traders may prefer to book some profits at higher levels," Chouhan added.
The relative strength index (RSI) of Nifty 50 has been above 70 in each of the last three sessions, suggesting that the benchmark may be overbought.
Investors also await the June quarter earnings of IndusInd Bank, ICICI Lombard General Insurance Company, ICICI Prudential Life Insurance Company, L&T Technology Services, and Polycab India among others on Tuesday.
Foreign institutional investors bought 730 million Indian rupees ($8.90 million) worth of Indian equities on a net basis on Monday, while domestic investors purchased 643.4 million rupees of shares, as per provisional NSE data.
STOCKS TO WATCH:
** LTIMindtree: Co misses June quarter profit view as clients cut spending.
** Sheela Foam: Co to buy mattress maker Kurlon for $262 million.
** Tata Elxsi: Co posts smallest profit growth in nearly four years.
** Reliance Industries: National Stock Exchange announces a special pre-open session for the company on July 20 on account of the demerger of its financial services business.
