News

Published: Apr 20, 2023
Updated: Apr 20, 2023

Indian shares to open higher despite weak global cues ahead of key earnings

Indian shares are expected to open slightly higher today after facing losses in the last three sessions. However, investors remain cautious as quarterly earnings reports trickle in amid weak global cues. The benchmark Nifty 50 has lost 1.17% this week due to weak earnings from top IT companies Tata Consultancy Services and Infosys. Additionally, foreign institutional investors have turned net sellers of Indian equities, offloading 131.7 million rupees on Wednesday.

Indian shares set to open a tad higher

India's NSE stock futures listed on the Singapore exchange were up 0.23% at 17,693.50 as of 8:13 a.m. IST.

Quarterly earnings reports and cautious investors

HCLTech Ltd is scheduled to report its earnings on Thursday, while Reliance Industries Ltd, India's top firm by market capitalisation, will report its earnings on Friday. Investors remain cautious as they await these reports amidst weak global cues.

Losses in the last three sessions

The benchmark Nifty 50 has lost 1.17% so far this week, as weak earnings of top two information technology (IT) companies Tata Consultancy Services Ltd and Infosys Ltd dampened sentiment.

FIIs turn net sellers

Foreign institutional investors (FIIs) have also turned net sellers of Indian equities over the last three sessions, offloading 131.7 million rupees ($1.6 million) on Wednesday.

Analyst's opinion

“While the markets have seen FIIs paring equity exposure in last few sessions, the recent dismal earnings show from select frontline IT companies have been a sour point,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

Global equities remain subdued

Global equities remained subdued on rising odds of the U.S. Federal Reserve delivering a 25 basis points rate hike at its upcoming meeting on May 3, and as investors digest the latest earnings reports.

Stocks to watch

Some of the stocks to watch include Mastek Ltd, Tata Communications Ltd, Ultratech Cement Ltd, and companies reporting earnings on Thursday such as HCLTech, Cyient Ltd, Sterling and Wilson Renewable Energy Ltd, ICICI Prudential Life Ltd, Oriental Hotels Ltd, and Bodhi Tree Multimedia Ltd. On Friday, Reliance Industries and Hindustan Zinc Ltd are reporting their earnings.

Despite facing losses in the last few sessions and weak global cues, Indian shares are expected to open slightly higher today. Investors remain cautious as they await quarterly earnings reports from major companies. The recent weak earnings of select frontline IT companies and foreign institutional investors turning net sellers have been a cause of concern for the market. However, analysts remain optimistic and recommend keeping an eye on the stocks mentioned above.