Key Takeaways
- Indian shares expected to remain unchanged as key companies report earnings.
- Reliance Industries and major banks like HDFC Bank, ICICI Bank will release results after market hours.
- Oil prices hover around one-month highs due to U.S.-Iran tensions.
Indian stock markets are anticipated to open with little change on Friday as investors await earnings reports from several heavyweight companies. The Nifty 50, a benchmark index of the top 50 stocks in India, is expected to start the day slightly above its previous close.
GIFT Nifty futures were trading at 24,091 as of 7:45 a.m. IST, indicating that the market could open with minimal fluctuation from Wednesday’s closing level of 24,072.75. Key companies such as oil-to-telecom conglomerate Reliance Industries and major private lenders HDFC Bank and ICICI Bank are scheduled to release their earnings reports after the market closes.
Dhupesh Dhameja, a derivatives research analyst at SAMCO Securities, commented that given the significant weightage of these companies in the benchmark index, the outcome of these earnings is expected to provide the catalyst for the market’s next directional move. He added, 'The Nifty 50 has held above its 20-day exponential moving average, suggesting buyers are defending lower levels despite repeated rejection near the 24,200 resistance zone.'
Analysts describe the current phase of trading as healthy consolidation as investors assess renewed Middle East tensions, monsoon progress, and corporate earnings. Information technology stocks will also be in focus after Wipro missed quarterly earnings estimates and signalled a weak recovery. Peer Tech Mahindra, however, topped quarterly revenue expectations due to growth in its manufacturing segment and a weaker rupee.
Brent crude prices rose 1.3% to $85.30 a barrel following increased U.S.-Iran clashes across the Gulf region. This has led to oil-to-telecom conglomerate Reliance Industries reporting earnings after market hours, potentially influencing investor sentiment in the broader market.
Asian markets were subdued on Thursday as investors continued to rotate out of semiconductor stocks. Foreign portfolio investors sold Indian equities worth a net 42.06 billion rupees ($436.6 million), while domestic institutional investors bought shares worth a net 29.86 billion rupees, according to provisional NSE data.
The market’s performance is closely tied to the earnings reports of major companies and geopolitical tensions in the Middle East. With Reliance Industries and other key players reporting their results after hours, Friday's trading session will be watched keenly for any significant shifts.
Given the significant weightage of these companies in the benchmark index, the outcome of these earnings is expected to provide the catalyst for the market’s next directional move.
Dhupesh Dhameja, Derivatives research analyst at SAMCO Securities
