Indian shares seen muted on caution over Trump`s Iran threat; banks in focus
Indian shares will likely open little changed on Monday, as caution over a possible escalation in the Iran war offset sentiment after U.S. President Donald Trump threatened "hell" if Tehran misses his deadline to reopen the Strait of Hormuz.
Investor sentiment is also expected to be shaped by quarterly business updates from several companies, including key lenders HDFC Bank, Kotak Mahindra Bank, Axis Bank, Bajaj Finance and others.
GIFT Nifty futures were trading at 22,734 as of 7:52 a.m. IST, indicating that the benchmark Nifty 50 will open near Thursday's close of 22,713.1 points. Indian markets were shut on Friday for Good Friday.
Brent crude prices jumped above $110 a barrel, while Asian markets were mixed following Trump's warning to Iran. [MKTS/GLOB]
In an expletives-laden social media post, Trump told Iran to reopen the Hormuz waterway, a vital conduit for about a fifth of global oil and natural gas supplies that has largely remained shut since the war began five weeks ago.
The Nifty 50 and Sensex lost 0.5% and 0.4%, respectively, last week, extending losses to a sixth straight week, as the war in the Middle East and the resulting energy shock jolted markets.
Meanwhile, several lenders released their quarterly business updates over the weekend.
"Loan growth for private banks was steady and improved slightly for some (public sector banks), reflecting tailwinds from higher (working capital) demand," Jefferies said on Sunday.
HDFC Bank, India's largest private lender, reported a 10% growth in average advances and a bigger 12.8% growth in average deposits in the March quarter.
Kotak Mahindra Bank's advances rose 16.2%, while Bajaj Finance reported a 20.5% jump in new loans.
STOCKS TO WATCH
** IT services company Wipro to acquire Mindsprint, a subsidiary of Singapore-based Olam Group, for an enterprise value of $375 million
** IndusInd Bank reports 8.7% drop in net advances for the quarter ended March 31, while deposits fell 2.6%
** Consumer goods maker Dabur expects fourth-quarter operating profit to grow at a faster pace than revenue, which is set to rise in mid-single digits, as sturdy demand at home counters slower growth in its international business
** Real estate company Sobha reported 11.1% growth in sales in the January-March period, while average price realisation rose 29.6%
