Indian Shares Expected to Open Marginally Lower on Global Concerns

Indian shares are anticipated to open slightly lower on Monday, influenced by rising concerns over U.S. interest rates and a surge in oil prices due to military conflict in the Middle East. The GIFT Nifty was trading down 0.62% at 19,647.50, indicating a lower opening for the Nifty 50 from Friday’s close of 19,653.50.

The strong U.S. jobs report and fears of a prolonged high interest rate regime weighed on Wall Street equities, leading to a lower close on Friday. Asian markets opened flat. Additionally, oil prices rose following the military conflict in the Middle East, where Israel attacked the Palestinian enclave of Gaza. This increase in oil prices negatively impacts importers like India.

Shrikant Chouhan, head of research for retail at Kotak Securities, predicts that weak global factors and foreign fund outflows may result in sharp intra-day fluctuations in Indian equities. Foreign institutional investors (FIIs) continued their selling streak for the 13th consecutive session, selling shares worth 902.9 million rupees ($11 million) on a net basis. On the other hand, domestic institutional investors (DIIs) bought 7.83 billion rupees in shares.

In the stock market, Tata Consultancy Services (TCS.NS) is set to consider a share buyback in its upcoming board meeting on Wednesday. Titan Co (TITN.NS) reported a 20% year-on-year revenue growth in the September quarter. Reliance Industries (RELI.NS) plans to raise 49.57 billion rupees from the Abu Dhabi Investment Authority. Prestige Estate Projects (PREG.NS) registered quarterly sales of 70.93 billion rupees, reflecting a 102% year-on-year increase.

While global concerns persist, investors will closely monitor market movements and company announcements for potential opportunities in the Indian stock market.