Pre-Open Points To Flat Start Amid Elevated Oil

Mumbai, October 14: Indian shares flatlined at pre open signalling a muted start amid elevated oil. 

Both benchmark indices rallied around 1.6% each on Tuesday, with IT stocks leading the gains after HCLTech delivered better-than-expected quarterly results.  

Foreign portfolio investors (FPIs) continued their selling streak for a 13th straight session, offloading shares worth a net Rs 1,305 crore, according to provisional data. Domestic institutional investors (DIIs), however, provided support by purchasing equities worth a net Rs 2,439 crore.  

Among stocks in focus, Tata Elxsi may attract investor interest after reporting higher quarterly profit, driven by growth in its transportation and media businesses. Transformers and Rectifiers India reported more than a twofold year-on-year jump in September-quarter earnings.  

Bharat Electronics, a defence electronics company, has secured orders worth Rs 533 crore since September 17.  

Wipro, an IT services major, does not expect the US suspension of the PERM labour certification programme to have a material impact on its business.

Zydus Lifesciences: The US drug regulator completed an inspection of the pharmaceutical company’s manufacturing facility in Ahmedabad, issuing five observations.  

Gujarat State Fertilizers and Chemicals‘s board has approved plans to establish phosphoric acid and sulphuric acid plants at its Sikka facility. 

Asian Markets Today 

Asian markets traded higher on Wednesday, with the MSCI Asia-Pacific index excluding Japan rising 1% as technology stocks recovered from recent losses. South Korea’s Kospi advanced 1.7%, while Japan’s Nikkei 225 gained 0.6%. South Korean chipmakers Samsung Electronics and SK Hynix rose more than 2%, while Japan’s Kioxia stabilised after the previous session’s selloff. 

The rebound followed a technology-led decline on Tuesday, when concerns over intensifying competition from Chinese semiconductor companies and questions over the sustainability of artificial intelligence investments weighed on global chip stocks. Investors, however, remained cautious ahead of US inflation data, which could influence expectations for the Federal Reserve’s monetary policy, and developments in the energy market. 

US Markets 

Wall Street ended lower on Tuesday as semiconductor stocks extended their losses and investors assessed mixed earnings from major US banks. The S&P 500 slipped 0.02%, the Nasdaq Composite fell 0.15% and the Dow Jones Industrial Average declined 0.35%. 

The Philadelphia Semiconductor Index fell 0.23%, extending its losing streak to five sessions. Micron Technology dropped 3.6%, while Applied Materials slid nearly 7%, amid concerns over Chinese competition and the sustainability of the AI investment boom. 

Banking stocks also came under pressure despite better-than-expected profits at some lenders. Citigroup fell 5.6%, while Wells Fargo lost 3.1% after its net interest income missed estimates. Investors are now awaiting US consumer price index data for fresh clues on the Federal Reserve’s policy trajectory. 

Crude Oil Prices Today 

Crude oil prices remained elevated amid concerns over energy supplies following Houthi missile and drone attacks on Saudi Arabia. Brent crude rose to $106.60 a barrel, while US West Texas Intermediate crude gained 0.9% to around $95 a barrel. 

Elevated oil prices pose a risk to India, a major crude importer, as higher prices can widen the import bill, put pressure on the rupee and fuel domestic inflation. A sustained increase in energy costs could also complicate the monetary policy outlook. 

Source

• Exchanges