Indian shares likely to open higher on earnings growth optimism
India's equity benchmarks are likely to open higher on Tuesday as investors continue to track quarterly business updates from companies amid optimism over earnings recovery.
The upside could likely be capped as benchmarks trade near their record highs and as the threat of additional U.S. tariffs looms.
The Gift Nifty futures were trading at 26,404.5 points, as of 7:47 a.m. IST, indicating that the Nifty 50 would open above Monday's close of 26,250.30.
The 50-stock index hit record high in intraday trading on Monday, before reversing the course to settle 0.3% lower, dragged by losses in information technology stocks.
Trade worries intensified on Monday after U.S. President Donald Trump said tariffs on India could be raised if New Delhi did not meet Washington's demand to curb purchases of Russian oil.
The U.S. has already imposed tariffs of up to 50% on Indian goods, with half of those imposed as a punitive measure over New Delhi's Russian crude imports.
STOCKS TO WATCH
Several banks and companies, including Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Trent, Dabur India, and others will be in focus after their quarterly business updates.
Indian lenders such as HDFC Bank, Axis Bank, and Kotak Mahindra Bank logged improved loan growth in the December quarter, signalling a rebound in credit demand in the world's fastest-growing major economy.
Clothing retailer Trent reported 17% growth in standalone revenue in the December quarter, marking a slight recovery from the previous quarter when it recorded its slowest growth in four years.
Consumer goods maker Dabur also saw signs of recovery in the third quarter, after consumers had deferred purchases ahead of the government's tax cuts that took effect in September.
