Indian shares seen opening higher after earnings-led rebound; higher oil to cap gains

Indian markets are poised for a modestly higher open, with upbeat corporate earnings supporting a rebound and helping the Nifty and Sensex advance in October. (Photo: Bloomberg)AI Quick ReadIndian shares are set to open marginally higher on Friday, after upbeat earnings aided a rebound in the previous session, though higher crude oil prices are likely to limit follow-through gains.

GIFT Nifty futures were at 22,981 as of 7:42 a.m. IST, indicating a positive start for the benchmark Nifty 50, which closed at 22,936.75 on Thursday.

Both the benchmarks Nifty and BSE Sensex gained over 1% each in the previous session, after strong quarterly results from key constituents and as the US Federal Reserve held interest rates steady as expected.

They have gained about 1.4% and 2.3%, respectively, in October, on course to snap a two-month selling streak, with sentiment finding some support from expectations of a potential review of long-term capital gains tax and steady corporate earnings despite global headwinds, said analysts at Geojit Investments and Equinomics Research.

"Overall market bias has improved to cautiously positive, supported by the breakout from recent consolidation and broad-based sector buying, though elevated crude prices remains an important risk," said Hitesh Tailor, technical research analyst at Choice Broking.

Brent crude futures rose 2.2% to $117.4 a barrel after Yemen's Houthis said they attacked Saudi Arabia's Ras Tanura oil refinery and airports in the country, which overshadowed hopes for peace talks between the US and Iran. [O/R]

Other Asian markets fell, with Japan's Nikkei 225 losing about 3%, ahead of Bank of Japan's rate decision.

South Korea's Kospi lost about 5% after Wall Street equities dipped overnight on AI jitters. Nasdaq lost over 1%, dragged by Alphabet after it revealed a hefty AI-related cash burn in its quarterly earnings. [MKTS/GLOB]

Foreign portfolio investors turned net sellers of Indian equities on Thursday after two sessions of buying, with outflows of 9.44 billion rupees ($99.17 million). Domestic institutional investors purchased shares worth 19.24 billion rupees, as per provisional data from the NSE.

Investors also await key earnings from index constituents such as Reliance Industries, Sun Pharma and Bharat Electronics due later in the day, which could influence the near-term market trajectory.

** Coal India misses quarterly profit view as rising costs overpower strong demand

** Godrej Consumer posts quarterly profit that marginally missed estimates, as elevated commodity-linked input costs weigh on earnings

** IndiGo posts a second-quarter loss that narrowed as the country's top airline undertook pricing actions to offset rising fuel costs, says fare hikes are inevitable

** Trent reports a 23% rise in second-quarter profit as strong sales at its fashion and lifestyle businesses and continued store expansion boost earnings

** P N Gadgil logs 53% year-on-year jump in net profit in the September quarter