India shares seen higher on Mideast peace prospects, earnings
- GIFT Nifty futures were at 24,686.50
Indian shares are set to open higher on Thursday, with hopes up for a diplomatic resolution to the Middle East crisis and a better-than-expected June-quarter earnings season so far.
Analysts expect near-term consolidation, with dips likely to attract buyers.
GIFT Nifty futures were at 24,686.50 at 8:09 a.m. IST, indicating a higher start for the Nifty 50, which closed at 24,624.65 on Wednesday.
The Nifty and Sensex gained 0.04% and 0.19%, respectively, in the previous session after the Reserve Bank of India held rates as expected, raised its financial year 2027 growth forecast and reaffirmed its commitment to the inflation target.
“Despite the range-bound session on Wednesday and selective profit booking, the underlying trend remains positive,” said Hitesh Tailor, research analyst at Choice Equity Broking.
“The bullish bias remains intact, with the 200-day exponential moving average near 24,400 likely to provide support.”
Multiple brokerages termed the RBI’s policy stance “dovish”, with any future rate increase seen as dependent on the inflationary impact of crude-price volatility and a monsoon shortfall.
Brent crude fell about 0.5% on Thursday as investors assessed whether progress in Iran-Oman talks could pave the way for a U.S.-Iran peace deal.
Asian markets fell 0.7%, dragged by technology stocks after Wall Street’s mixed overnight close.
In India, Aurobindo Pharma, Biocon , Cummins India, GMM Pfaudler and Navin Fluorine will be in focus after reporting higher June-quarter profits.
A broadly resilient earnings season and renewed foreign inflows, partly driven by an unwinding of the AI trade, have helped cushion Indian equities from crude-related volatility over the past month.
Motilal Oswal said 211 companies under its coverage posted 2% year-on-year profit growth, versus its forecast for a 10% decline. Excluding oil marketing companies, which were hit by higher crude costs, profit growth was 17%, ahead of its 13% estimate.
Foreign portfolio investors have $1.27 billion of Indian stocks so far in August, after purchasing $2.12 billion in July.