Indian shares set for weak start on trade war risks, mixed earnings
Indian shares are likely to open on a weaker note on Monday, pressured by renewed concerns over a potential global trade war and mixed earnings from blue-chip companies.
Gift Nifty futures were trading at 25,599.5 points, as of 8:04 a.m. IST, indicating that the Nifty 50 could start the session lower than its previous settlement level of 25,694.35.
U.S. President Donald Trump vowed on Saturday to implement a wave of increasing tariffs from February 1 on eight European Union members until Washington is allowed to buy Greenland.
MSCI's broadest index for Asia Pacific stocks outside Japan slipped 0.4%, while U.S. stock futures and dollar edged lower. [GLOB/MKTS]
Investors will also react to earnings from at least five Nifty 50 companies, including three heaviest-weighted stocks: HDFC Bank, Reliance Industries, and ICICI Bank.
While India's largest private lender HDFC Bank beat December-quarter profit estimates on strong loan growth and improved margins, ICICI Bank missed expectations on higher provisions for bad loans.
Reliance Industries missed quarterly profit estimates, pressured by weakness in its oil and gas business, higher costs and slowing earnings growth at its retail segment. The company's UK-listed shares shed 2% post earnings.
Wipro, India's fourth-largest IT services firm, forecast on Friday weaker-than-expected revenue growth for the current quarter after deal bookings fell to a six-quarter low in the October-December period, sending its U.S.-listed shares down 7.4%.
STOCKS TO WATCH
** India's aviation watchdog fined IndiGo a record $2.45 million and issued warnings to senior executives after mass flight cancellations last month
** Yes Bank reports a sharp jump in third-quarter profit, helped by a drop in provisions for bad loans and other contingencies
** Tech Mahindra reports higher-than-expected revenue for third quarter, aided by growth in its communications and manufacturing segments
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