Indian shares are set to open higher on Monday on improved sentiment, following robust economic data from the U.S., but markets are expected to consolidate amid a slew of corporate earnings.
India's NSE stock futures listed on the Singapore exchange were up 0.16% at 18,153, as of 8:14 a.m. IST.
Global cues improved after robust U.S. jobs data for April brightened the economic outlook, triggering gains in Wall Street equities and temporarily easing concerns over the economic health. Asian markets inched higher. Oil prices also recovered a tad after a 10% fall last week, with Brent crude futures rising above $75 per barrel, on strong economic data. The Nifty 50 and Sensex erased their weekly gains following an 1% slide on Friday, dragged by heavyweights Housing Development Finance Corporation and HDFC Bank on concerns of foreign funds outflow in the merged entity after an MSCI report.
"The decline in the index (on Friday) has faded the bullish tone and indications are now in favour of consolidation," said Ajit Mishra, vice president of technical research at Religare Broking. Daily and weekly chart patterns also hinted at a rejection of bulls at higher levels, analysts added, and they expect the benchmark to see sideways movement with a resistance near 18,200 levels. Despite the selling on Friday, foreign institutional investors extended their buying streak in Indian equities for the seventh session in a row, adding equities worth 7.78 billion rupees ($95.2 million). They have begun fiscal 2024 purchasing Indian shares, adding 116.31 billion rupees in April after selling shares in fiscal 2022 and 2023.
Stocks to Watch:
** Britannia Industries Ltd : Co reports nearly 50%
rise in Q4 profit on strong demand.
** One 97 Communications Ltd : Paytm's parent
reports 52% rise in Q4 revenue, posts operating profit for
second consecutive quarter.
** Marico Ltd : Co reports 20% jump in Q4 profit on
rural demand, easing inflation.
** Alembic Pharmaceuticals Ltd : Co posts
near-seven-fold jump in Q4 profit on strong sales. ($1 = 81.7330 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia
Cheema)
