Indian shares likely to open higher on strong business updates from lenders
- GIFT Nifty futures were at 24,322.5
Indian shares are expected to open positively, driven by strong quarterly updates from key lenders like HDFC Bank and Axis Bank, coupled with sustained foreign inflows and lower crude oil prices.
- Quarterly business updates from major Indian lenders.
- Significant foreign investor inflows into the Indian market.
- Impact of crude oil prices below $72 per barrel.
Indian shares are set to open with a positive tone on Monday as investors react to quarterly business updates from key lenders and companies, while crude oil prices remained below $72 per barrel.
GIFT Nifty futures were at 24,322.5, as of 7:50 a.m. IST, indicating the Nifty 50 could open above Friday’s close of 24,270.85.
Over the weekend, several lenders including HDFC Bank, Axis Bank, Kotak Mahindra Bank, among others, reported provisional numbers for the April-June period ahead of quarterly earnings.
India’s biggest private lender HDFC Bank reported a 15.4% increase in gross advances during the June quarter, with period-end deposits rising 14.7%.
Axis Bank reported 18.8% growth in gross advances, while Kotak Mahindra Bank’s net loan growth stood at 15.1%.
Analysts at brokerage firm Jefferies said HDFC Bank, IndusInd Bank and Bandhan Bank saw a better-than-expected pickup in loan growth, while Kotak Mahindra Bank’s growth softened slightly.
Investors will also take confidence from foreign inflows worth 13.55 billion rupees ($142.32 million) on Friday, as per provisional data.
This would mark a third consecutive session of net buying.
The drop in crude oil prices below $72 per barrel, expected inflows from foreign currency non-resident (bank) deposits, and weakening of global AI trade are expected to persuade foreign investors to turn buyers on India, said V.K. Vijayakumar, chief investment strategist at Geojit Investments.