Indian shares set to open marginally higher; Tata Capital IPO in focus
India's stock benchmarks are poised to open marginally higher on Monday after the central bank's lending reforms drove gains in banks in the last two sessions, while analysts expect quarterly earnings to guide the near-term market trajectory.
Gift Nifty futures were trading at 24,960 points as of 8:09 a.m. IST, indicating that the Nifty 50 will open above Friday's close of 24,894.25.
Both Nifty and BSE Sensex rose about 1% last week, supported by banks and metals, with firming bets of a U.S. Federal Reserve rate cut this month also buoying sentiment. [.BO]
"The market enters the new week with cautious optimism. The Reserve Bank of India's supportive policy stance and strong GST collections offer domestic comfort," said Vinod Nair, head of research at Geojit Investments.
The RBI, which maintained rates as expected on Wednesday, also detailed plans to increase limits on lending against shares and reduce risk weights for non-bank lenders for infrastructure projects.
Anticipation of improved earnings in the September quarter could also aid market sentiment, although the lingering global trade uncertainties will cap the gains, according to two analysts.
Foreign portfolio investors (FPI) offloaded Indian shares for the ninth straight session, dumping stocks worth 15.83 billion rupees ($178.4 million) on Friday.
Meanwhile, domestic institutional investors purchased stocks worth $55.2 million on Friday, the 28th straight session of inflows.
Tata Capital, India's biggest initial public offering (IPO) of 2025, will open for subscription today. The company has set a price range of 310 rupees to 326 rupees per share.
STOCKS TO WATCH ** Bajaj Housing Finance posts 32% year-on-year rise in gross disbursement in the September quarter ** Ceigall India secures order worth 7.12 billion rupees from the Maharashtra State Electricity Distribution Co ** Kalyan Jewellers says its consolidated revenue grew 30% year-on-year in the September quarter ** IndusInd Bank says its net advances fell 8% year-on-year in the second quarter while deposits fell 5%
($1 = 88.7300 Indian rupees)
