Indian shares are set to open lower on Wednesday, as intensifying conflict in the West Asia and worries of a prolonged high interest rate regime after a better-than-expected US retail sales data hurt sentiment.
India's GIFT Nifty was down 0.07 per cent at 19,797 as of 8:09 a.m. compared to its overnight close, indicating that the Nifty 50 will open below Tuesday's close of 19,811.50.
Asian markets edged lower after a blast at a Gaza hospital, which killed hundreds of Palestinians, dealt a blow to hopes of containing the Israel-Hamas military conflict. Strong gross domestic product (GDP) data from China, however, capped further decline.
Worries about supply disruptions from the West Asia lifted oil prices to nearly $92 per barrel. Rising oil prices are a negative for importers of crude like India.
Wall Street equities were mixed overnight, while US Treasury yields surged after U.S. retail sales data triggered concerns that the US Federal Reserve will maintain higher rates for longer, in its fight to tame inflation.
Domestic financial services and information technology stocks will be in focus as investors await street reaction to the quarterly results of Bajaj Finance, L&T Technology Services and Tata Elxsi.
Earnings of Bajaj Auto, IndusInd Bank and Wipro, due later in the day, will also be in focus.
Analysts said that September-quarter results, festive demand and updates on the geopolitical concerns in the West Asia will influence the trajectory of domestic equities in the near term.
Foreign institutional investors (FIIs) bought Indian shares worth ₹264 crore on a net basis on Tuesday. Domestic investors bought shares worth ₹113 crore.
STOCKS TO WATCH
Bajaj Finance: Non-bank lender reports smaller-than-expected rise in second-quarter profit, as provisions for bad loans increased.
L&T Technology Services: Co posts rise in consolidated net profit in Q2, but trims its fiscal 2024 growth forecast, on longer deal decision cycles and macroeconomic challenges.
Tata Elxsi: Co reports rise in September quarter profit, aided by an uptick in transportation business.
Mazagon Dock Shipbuilders: Shipbuilding company signs contract with Ministry of Defence for the construction and delivery of one training ship for the Indian Coast Guard, at a cost of ₹310 crore.