BENGALURU, Jan 31 (Reuters) - Indian shares are set to
open higher on Tuesday, the final day of Adani Enterprises' mega
secondary share sale and a day ahead of the Union budget, with
investors also keeping an eye out for interest rate decisions by
global central banks later this week.
India's NSE stock futures listed on the Singapore exchange were up 0.47% at 17,789 as of 08:11 a.m. IST. Asian
markets were 0.51% lower. Indian snapped a losing streak on Monday as key Adani Group
stocks arrested their two-session tumble since U.S-based
short-seller Hindenburg Research, last week, flagged concerns
about the groups' debt levels and the use of tax havens, charges
the conglomerate has denied. The report also weighed on banks,
on worries about their loan exposure to the group.
Still, the group's seven listed companies have lost $65
billion in market value since the report, while the flagship
Adani Enterprises' stock is well below the offer price
of its crucial $2.5 billion follow-on share offering, which has
seen only 3% subscription in the first two days.
Investors will also shift focus to India's Union budget on
Feb. 1, with the government's fiscal consolidation path and
borrowing calendar for fiscal 2024 seen as key triggers.
Traders will also watch the budget for any incentives to
entice foreign investors, who have piled out of the market,
especially since the report on Adani Group.
Foreign institutional investors have sold 151.65 billion
rupees ($1.86 billion) worth of shares on a net basis in the
past three sessions.
The Federal Reserve's rate decision is due on Wednesday,
with the focus on future monetary policy, which is key for
Indian firms, especially IT companies, that have major exposure
to the United States.
Besides the Fed, rate decisions from the European Central
Bank and the Bank of England are also due this week.
Aiding domestic equities could be oil prices, which fell
over 2% ahead of OPEC+ group meeting and on indications of a
strong Russian supply. A fall in prices is a positive for oil
importers like India. STOCKS TO WATCH
** Larsen & Toubro : The company reported a
lower-than-expected rise in consolidated net profit in third
quarter on moderate order growth.
** Tech Mahindra : The company reported a fall in
quarterly consolidated net profit due to higher costs and a
moderation in demand.
** KEC International : The company bagged new
orders worth 11.31 billion rupees.
** Bharat Petroleum : The company posted a slide in
quarterly net profit on stagnant retail prices. ($1 = 81.5930 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio
D'Souza)
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