Indian shares set to open higher tracking Asian peers
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Indian shares are set to open marginally higher on Wednesday, tracking a rebound in global stocks, as U.S. Treasury yields eased and crude oil prices moderated below $90 per barrel.
India's GIFT Nifty was down 0.08% at 19,308, as of 8:20 a.m. IST, but higher than the Nifty 50 close on Monday of 19,281.75.
Asian markets are up 1%, aided by China's approval of a trillion-yuan sovereign bond issue as stimulus to boost its economy. Wall Street equities gained overnight, boosted by strong quarterly results. [MKTS/GLOB]
U.S. Treasury yields eased from multi-year highs, ahead of the release of U.S. GDP data and a key inflation metric.
Meanwhile, Brent crude futures extended losses for the third session in a row, easing to $88 per barrel. A fall in oil prices is a positive for importers of the commodity like India. [O/R]
India's Nifty 50 logged its worst session in more than seven months on Monday, as elevated U.S. bond yields and Middle East conflict weighed on sentiment.
"Fear of regional conflict in the Middle East and worries over more rate hikes by U.S. Fed and high rates for extended periods were the major cause of concern in the market," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial.
"Even the domestic earnings season has been mixed so far, thus not providing resilience to the market," Khemka added.
Both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) were, however, buyers in Indian shares on Monday, adding 2.52 billion rupees and 11.12 billion rupees, respectively, on a net basis.
STOCKS TO WATCH:
** Reliance Industries: Disney is nearing a deal to sell its India operations, which it values around $10 billion, to Reliance Industries, Bloomberg News reported.
** Adani Ports and Special Economic Zone: Co incorporates unit Udanwat Leasing IFSC to carry out business of owning and leasing of aircraft.
** Mahindra Logistics: Co posts consolidated net loss of 159.3 million rupees in September quarter compared to a profit of 121.9 million rupees year-on-year.
** Tech Mahindra: Co approves proposal to divest 30% shareholding in Avion Networks Inc for $50,000.
