Indian shares set for muted start
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Indian shares are set to open flat on Wednesday, with traders expecting caution to prevail due to persistent foreign selling and dull corporate earnings as investors await key U.S. data and outcome of the U.S. presidential election.
The Gift Nifty futures were trading at 24,445.5, as of 07:55 a.m. IST, indicating that the benchmark Nifty 50 will open near Tuesday's close of 24,466.85.
Although benchmark indexes Nifty 50 and BSE Sensex have clocked in gains in the past two sessions, they are down about 7% from record-high levels hit on Sept. 27. Sentiment was dampened by foreign outflows for 22 straight sessions and a largely tepid earnings season so far.
Foreign selling from Indian shares in October has risen to$10.82 billion, as of Oct. 29, according to National Securities Depository data, set for record monthly outflows.
The Nifty 50 has lost 5.21% in October so far, and is on track for its worst monthly performance since March 2020 when lockdown-related restrictions rattled investors and triggered a meltdown across global equity markets.
Investors are likely to remain cautious and trading will be indecisive ahead of U.S. non-farm payroll data on Friday and the presidential election on Nov. 5, two traders said.
Intraday volatility could still climb in the next few sessions, ahead of monthly derivatives expiry on Thursday and stock-specific reactions to quarterly earnings will continue to guide the markets' trajectory, they said.
Asian markets were trading flat.
Most Wall Street equities closed higher overnight, with Nasdaq Composite logging a record closing high on Tuesday.
After Google parent Alphabet topped expectations for its third-quarter revenue, focus shifted to earnings reports from several of the biggest technology companies including Microsoft, Amazon, Apple and Meta due this week. [MKTS/GLOB]
STOCKS TO WATCH
** Consumer goods maker Marico beats second-quarter profit estimate, helped by price hikes.
** Realty developer Prestige Estates posts slowing second-quarter revenue growth, dragged by delayed approvals that weighed on property launches in its mainstay Bengaluru market.
** Garden Reach Shipbuilders signs contract for an acoustic research ship in a deal worth 4.91 billion rupees.
** Larsen & Toubro, Dabur, Biocon and Tata Power will be in focus ahead of their earnings later in the day.
($1 = 84.0650 Indian rupees)
