BENGALURU (Reuters) – Indian shares are set to open marginally higher on Wednesday, ahead of the U.S. Federal Reserve’s monetary policy decision and key corporate earnings.
India’s GIFT Nifty on the NSE International Exchange was up 0.13% at 19,882 as of 8:02 a.m. IST.
Wall Street equities closed higher overnight, ahead of an expected 25 basis-point rate hike by the Fed later in the day and strong corporate earnings from Google owner Alphabet and Microsoft. Asian markets remained subdued in the run-up to the Fed decision. [MKTS/GLOB]
While the market is not expecting a big rate surprise, investors will be closely watching the Fed’s comment for clarity on future rate trajectory, per analysts.
“We expect caution to prevail in markets ahead of the Fed rate decision,” said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services.
Both the Nifty 50 and Sensex closed flat on Tuesday as a slide in consumer stocks offset an uptick in metal stocks.
Oil prices eased after hitting a three-month high on Tuesday on China’s plans to support its economic recovery and signs of tighter supplies. A rise in crude prices is a negative for oil-importing countries like India, where oil constitutes a significant part of the import bill. [O/R]
Foreign institutional investors bought 10.89 billion rupees ($132.98 million) of Indian equities on a net basis on Tuesday, while domestic investors sold 3.34 billion rupees of shares, as per provisional NSE data.
STOCKS TO WATCH:
** Larsen & Toubro: Co beats profit view in first quarter on strong performance in core business, approves $1.22 billion share buyback.
** Tata Motors: Co reports higher-than-expected rise in net profit in June quarter on strong JLR sales.
** CEAT: Co beats June quarter profit view on higher demand, fall in costs.
** Can Fin Homes: Co says employees committed nearly $5 million fraud.
** Key earnings today: Axis Bank, Cipla, Bharat Petroleum Corporation, Dr Reddy’s Laboratories, Tech Mahindra.
($1 = 81.8900 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil)
