Indian shares set to open higher on easing US rate worries, oil prices

Indian shares are poised to start the day on a positive note, taking cues from global markets. The easing concerns over U.S. interest rates, thanks to recent dovish comments by key Federal Reserve officials, coupled with stable oil prices, have boosted investor sentiment. The GIFT Nifty is trading up 0.08% at 19,792.50, indicating a higher opening for the Nifty 50 from its previous close of 19,689.85.

Wall Street rallied overnight as Atlanta Fed Bank President Raphael Bostic reassured investors that the central bank does not need to raise rates further. Bostic also expressed confidence in the economy, stating that the Fed does not foresee a recession on the horizon. These remarks, following similar dovish comments from other Fed officials on Monday, have alleviated concerns about additional rate hikes. Consequently, U.S. Treasury yields, which had climbed to multi-year highs last week, experienced their largest drop in nearly three months.

Asian markets have also opened higher, reflecting the positive sentiment. However, investors are keeping a close eye on the military conflict in the Middle East, as Israel has vowed to escalate its response to an attack by the Palestinian militant group Hamas with a ground offensive.

In the energy sector, Brent crude futures, which surged over 4% on Monday, dipped 0.57% on Tuesday and are currently hovering below $88 per barrel. This stability in oil prices is providing some relief to investors.

Furthermore, market participants eagerly anticipate the September quarter earnings of Tata Consultancy Services (TCS.NS), India’s leading information technology company, which are due later today. The results of other IT services providers like HCL Tech (HCLT.NS) and Infosys (INFY.NS) are also eagerly awaited and scheduled to be released on Thursday.

While foreign institutional investors (FIIs) continued to sell Indian shares for the 15th consecutive session on Tuesday, domestic institutional investors (DIIs) stepped in and bought shares worth 19.63 billion rupees, showcasing their confidence in the market.

In terms of specific stocks to watch, Delta Corp (DELT.NS) is set to announce its earnings today, while Bank of Baroda (BOB.NS) has been barred by the Reserve Bank of India from adding customers to its mobile app. Birla Corporation (BRLC.NS) has received an order imposing a penalty of 84.3 million rupees for excess production of limestone without environmental clearance.

Overall, the positive global cues, coupled with the reassurance from key Federal Reserve officials, have set the stage for a promising day for Indian shares. With earnings announcements from major companies on the horizon, investors are eagerly awaiting further positive developments in the market.