Pre-Open Points To Higher Open As Global Equities Rally

Mumbai, October 27: Indian shares rose at pre open signalling a higher start even as oil remained elevated despite pullback. 

Nifty 50 rose 0.2% while Sensex rose 0.16% at pre open.  

The Sensex and Nifty 50 rebounded 0.7% on Monday, ending a four-session losing streak as gains in select stocks following their quarterly earnings lifted sentiment.  

The US Federal Reserve is widely expected to keep interest rates unchanged on Wednesday before raising them again in December.  

Foreign investors offloaded shares worth Rs 1,462 crore on Monday, provisional exchange data showed. Their net sales have reached $4.75 billion in October and a record $32.56 billion so far in 2026.  

India’s limited exposure to the artificial intelligence boom has been cited as a key factor behind the sustained foreign outflows, contributing to the Nifty 50’s underperformance against emerging-market peers.  

Tata Consumer Products reported a better-than-expected second-quarter profit, supported by demand for packaged foods and beverages as it diversifies beyond its core tea and salt businesses.  

One 97 Communications, the parent of Paytm, reported an almost 11-fold surge in quarterly profit to Rs 226 crore, while revenue grew 28.5% year-on-year.  

Nazara Technologies, a gaming company, returned to profitability in the September quarter as revenue jumped 53% year-on-year. 

Asian Markets Rally, South Korea Leads Gains 

Asian equities advanced on Tuesday, led by a sharp rally in South Korea and gains in Japan, as investor sentiment improved on artificial intelligence-related developments and expectations of strong corporate earnings. The planned initial public offering by AI company Anthropic has added to interest in the sector ahead of a busy week for global markets. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6%, while South Korea’s KOSPI surged 3.7% and Japan’s Nikkei 225 climbed 1.9%. 

The rally reflects renewed optimism about artificial intelligence and the potential for technology companies to deliver robust earnings. However, investors remain alert to whether heavy spending on AI infrastructure can generate sustainable revenue growth and justify elevated valuations. 

Wall Street Ends Higher Ahead of Tech Earnings 

US stocks closed higher on Monday, with technology shares leading gains after Anthropic disclosed plans for an initial public offering, bolstering investor interest in the artificial intelligence sector. 

The Dow Jones Industrial Average rose 146.42 points, or 0.28%, to 52,361.58. The S&P 500 gained 0.70% to 7,676.77, while the Nasdaq Composite advanced 0.83% to 26,169.38. 

Investors are now looking ahead to quarterly results from major technology companies, including Alphabet, Microsoft and Amazon. Their earnings and outlooks could offer fresh insights into AI demand, capital expenditure and the sustainability of the sector’s rally. 

The US Federal Reserve’s policy decision on Wednesday is another key event. While markets largely expect interest rates to remain unchanged, investors will assess policymakers’ comments for signals on inflation and the future path of monetary policy. 

Crude Oil Eases, but Supply Risks Persist 

Oil prices edged lower on Tuesday after a recent rally, offering some respite to energy-importing economies. Brent crude futures fell 0.9% to $114.70 per barrel, while US West Texas Intermediate also traded lower. 

Despite the pullback, prices remain elevated amid concerns over supply disruptions and geopolitical tensions in the Middle East. Reports of attacks on Saudi Arabian infrastructure have heightened supply concerns, while hopes of diplomatic efforts to ease regional tensions have provided some relief. 

For India, persistently high crude prices pose a risk to inflation, the current account deficit and corporate profit margins. Higher energy costs could also complicate the Reserve Bank of India’s policy outlook. 

Source

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