Indian shares seen muted; lenders' earnings take centre stage
- GIFT Nifty futures were at 23,131 at 7:49
Indian shares are expected to open flat, influenced by mixed earnings from HDFC Bank and ICICI Bank, while elevated crude oil prices continue to weigh on market sentiment.
- Mixed earnings from major private lenders HDFC Bank and ICICI Bank.
- Impact of elevated crude oil prices on market sentiment.
- Recent rally in Indian IT stocks and broader market gains.
Indian shares are likely to open little changed on Monday, with investors assessing the results of top private lenders HDFC Bank and ICICI Bank, while crude prices above $108 a barrel weigh on risk sentiment.
GIFT Nifty futures were at 23,131 at 7:49 a.m. IST, indicating a muted start for the benchmark Nifty 50, which closed at 23,146.15 on Friday.
The benchmarks Nifty and Sensex rose about 3% last week, their best weekly performances in six months, aided by a rally in IT stocks after stronger-than-expected quarterly earnings and a selloff in global AI markets that prompted value-buying elsewhere.
September-quarter results will be in focus in this session.
HDFC Bank reported a second-quarter profit that narrowly missed analyst estimates, as weaker treasury income and higher provisions for bad loans offset robust lending growth.
ICICI Bank, by contrast, posted a better-than-expected September-quarter profit, supported by stronger loan growth and lower bad-loan provisions.The two lenders are the biggest constituents of the Nifty 50, making their share-price reaction especially important for the broader market.
“A positive reaction to private-bank earnings could help the market absorb higher oil prices, with Nifty facing immediate resistance at 23,150 levels,” said Hariselvan Radhakrishnan, founder and CEO of HST Wealth.
Brent crude prices , which eased from the $110-a-barrel level hit on Friday, remained elevated at roughly $108 a barrel.
Although US President Donald Trump waived sanctions and tariffs on Russia, a move that could increase Russian fuel exports and ease supply concerns, persistent Middle East tensions continued to support prices.
“The pullback from $110 to $108 remains too modest to materially improve India’s macroeconomic outlook,” Radhakrishnan said.
Foreign portfolio investors turned net buyers with domestic markets after 15 sessions on Friday, with inflows at 11.66 billion rupees ($122.79 million).
Domestic institutional investors outflows stood at a net 36.61 billion rupees, as per NSE’s provisional data.
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