Sensex and Nifty opened higher on Friday after three consecutive sessions of losses, although gains were expected to be short-lived amid surging oil prices in the backdrop of escalating tensions in the Middle East.
GIFT Nifty futures were trading at 22,830.50 at 7:42 am, signalling a positive opening for the benchmark Nifty 50, which closed at 22,687.65 on Thursday, according to a Reuters report.
The Nifty and Sensex have declined about two per cent each so far this week, with sentiment weighed down by a surge in Brent crude oil futures to $113.5 a barrel amid concerns over further energy supply disruptions following Houthi attacks on top oil exporter Saudi Arabia.
“Recent price action suggests buyers are attempting to defend lower levels, but sellers continue to emerge on rebounds, keeping the market bias cautious,” Reuters quoted as saying Hitesh Tailor, technical research analyst at Choice Broking.
Asian markets opened lower, dragged down by technology stocks after Wall Street equities fell overnight.
The Nasdaq slumped more than 2%, while Meta shares fell nearly 8% after the Facebook parent reported its first cash outflow in more than a decade, driven by expenditure related to artificial intelligence.
Foreign portfolio investors were net buyers of Indian stocks on Thursday, with inflows totalling 10.22 billion rupees ($107.79 million). Domestic institutional investors also purchased a net 16.14 billion rupees worth of stocks, according to provisional data from the NSE.
“Domestically, near-term market direction will depend on quarterly earnings delivery, as investors react to management commentary on demand outlook for coming quarters,” said Vinod Nair, head of research at Geojit Investments.
Colgate-Palmolive India will be in focus after reporting an increase in quarterly profit, supported by demand for its toothpaste portfolio.
Swiggy plans to expand the presence of its quick-commerce business, Instamart, after the company reported a bigger-than-expected loss in the September quarter.
Stocks to watch
eMudhra: The company exited the website security business after flaws trigger global alarm. Its shares have fallen 36 per cent over two sessions.
Hatsun Agro: The company reported a 5.5 per cent year-on-year increase in second-quarter profit to 1.16 billion rupees, while revenue rises about 20 per cent.
HPCL: The company reported a nine per cent decline in September-quarter profit, as higher tax expenses and a sharp surge in oil prices squeezed the fuel retailer’s margins.
(With inputs from Reuters)