Indian shares to open tad higher as lending reforms, quarterly updates aid sentiment
Indian benchmark shares are poised to open higher on Tuesday, after three sessions of gains, as the central bank's lending reforms and positive business updates from companies ahead of their September quarter results boosted sentiment.
Gift Nifty futures were trading at 25,160.5 points as of 7:40 a.m. IST, indicating that the Nifty 50 will open above Monday's close of 25,077.65.
Both benchmarks have gained about 1.9% each in the last three sessions, led by financials after the Reserve Bank of India eased rules for lending to capital markets and large companies.
The quarterly updates from banks and financials over the weekend have also reaffirmed expectations of a gradual improvement in earnings, said two analysts.
Additionally, festive season demand and optimism around new initial public offerings (IPO) kept the undertone constructive, said Ajit Mishra, senior vice president of research at Religare Broking.
The IPOs of Tata Capital and WeWork India Management are already underway, while LG Electronics' IPO opens for bidding on Tuesday.
Optimism surrounding the anticipated U.S. Federal Reserve rate cut later in the month also fuelled risk-on sentiment, Mishra added.
Foreign institutional investors continued selling domestic equities, offloading shares worth 2.14 billion rupees ($24.12 million) on a net basis on Monday, the 10th straight session of outflows.
Domestic institutional investors remained buyers for the 29th session in a row on Monday, with net inflows of 48.82 billion rupees, provisional data from the National Stock Exchange showed.
STOCKS TO WATCH
** LTIMindtree secures its largest-ever deal with a leading global media and entertainment company, with two sources aware of the matter pegging the size at $580 million
** Metropolis Healthcare says in its business update its revenue grew 23% Y/Y in the September quarter
** Bank of India says its global business rose
11.8% Y/Y an deposits gained 10.08% Y/Y as on September 30, 2025
** Brigade Enterprises signs joint development agreement for premium residential projects in Chennai with a gross development value of 10 billion rupees
($1 = 88.7160 Indian rupees)
