Indian Shares Set for Higher Opening
Strong corporate earnings and expectations of a potential tax review support market sentiment, while rising crude oil prices and global market weakness threaten to limit gains.
Indian equity markets were expected to open marginally higher on Friday, October 30, following a strong rebound in the previous trading session. Upbeat quarterly earnings from major companies and expectations of a possible review of long-term capital gains tax supported investor sentiment, although elevated crude oil prices remained a concern.
GIFT Nifty futures were trading at 22,981 around 7:42 a.m. IST, indicating a positive opening for the benchmark Nifty 50, which had closed at 22,936.75 on Thursday. Both the Nifty and BSE Sensex had gained more than 1% in the previous session after strong corporate results and the US Federal Reserve kept interest rates unchanged.
The benchmarks had gained approximately 1.4% and 2.3%, respectively, during October and were on course to end a two-month losing streak. Analysts said resilient corporate earnings, domestic buying and expectations of a potential review of long-term capital gains tax had contributed to the improvement in market sentiment.
However, rising crude oil prices continued to pose a risk. Brent crude futures climbed 2.2% to around $117.40 per barrel after Yemen's Houthi group said it had attacked Saudi Arabia's Ras Tanura oil refinery and airports in the country. The developments raised concerns about energy supply disruptions and overshadowed hopes for progress in US-Iran peace discussions.
Global market weakness also remained a concern. Japan's Nikkei 225 declined around 3%, while South Korea's Kospi fell approximately 5%. US equities had also weakened amid concerns about artificial intelligence-related spending and its potential returns.
Foreign portfolio investors turned net sellers of Indian equities on Thursday after two consecutive sessions of buying, offloading shares worth ₹944 crore, according to provisional exchange data. Domestic institutional investors provided support by purchasing equities worth approximately ₹1,924 crore.
Investors were also looking ahead to quarterly earnings from major companies, including Reliance Industries, Sun Pharma and Bharat Electronics. Their results were expected to influence sector-specific activity and the near-term direction of the benchmarks.
Market participants were therefore balancing improving domestic earnings and buying support against expensive crude oil, foreign investor selling and uncertainty in global markets. The combination of these factors was expected to determine whether the recent recovery could continue.