Indian shares set to open higher on inflation boost, FII buying
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Indian shares are set to open higher on Tuesday, on cooling domestic inflation and persistent foreign institutional buying in equities, while hopes of a debt ceiling deal in the U.S. boosted sentiment across global equities.
India's NSE stock futures listed on the Singapore exchange were up 0.27% at 18,453, as of 7:58 a.m. IST.
The Nifty 50 closed at a near-five-month high on Monday, helped by earnings and favourable inflation data. The benchmark has gained 6% in fiscal 2024 so far.
"The underlying short-term trend of Nifty continues to be positive," said Nagaraj Shetti, technical research analyst at HDFC Securities, adding that there was ongoing volatility in the market at around 18,400 levels.
"Any dips could be a buying opportunity around 18,280-18,200 levels."
The recent uptick in markets has been supported by the return of foreign buying in Indian equities.
Foreign institutional investors (FIIs) extended their buying streak for the thirteenth session on Monday, adding 16.85 billion rupees ($206.04 million) worth of shares.
This is the longest daily buying streak in nine months by FIIs, who bought more than 210 billion rupees worth of shares in the period, according to provisional data from the National Stock Exchange.
Wall Street equities advanced, ahead of talks between the U.S. President and House Republicans about raising the debt ceiling on Tuesday.
The Congressional Budget Office had earlier warned that the country faced risk of defaulting on payment obligations without raising the government's $31.4 trillion debt ceiling.
Asian markets trimmed gains after data showed China's industrial output grew at a lower-than-expected 5.6% year-on-year in April, while retail sales growth also missed forecasts. [MKTS/GLOB]
Stocks to Watch:
** HDFC Bank: SEBI approves proposed change in control of HDFC's unit HDFC Capital Advisors Ltd, pursuant to merger scheme of HDFC and HDFC Bank
** Berger Paints Ltd: Co reports fall in consolidated net profit in March quarter.
** Coromandel International Ltd: Co reports slide in Q4 profit as costs rise.
** PVR Inox Ltd: Co posts Q4 loss on costs related to some cinema closures.
($1 = 81.7800 Indian rupees)
