Pre-Open Points To Lower Start As Oil Tops $115, Jio Gets Ready For Debut

Mumbai, October 28: Indian shares declined at pre open pointing to a lower start as oil topped $115 per barrel and investors awaited Jio Platforms debut and US Federal Reserve decision later in the day. 

Nifty 50 declined 0.2% while Sensex declined 0.4% at pre open.  

Reliance Industries’ telecom and digital arm, Jio Platforms, is set to rank as India’s fourth-largest listed company by market capitalisation, behind its parent, Bharti Airtel and HDFC Bank. Its record $3.2 billion IPO drew bids worth $77 billion, making it the most heavily subscribed public offering in India’s history.  

The US Federal Reserve’s policy decision will remain a key global trigger, with investors looking for clues on how policymakers intend to tackle inflationary pressures from rising oil prices. Foreign portfolio investors bought Indian equities worth Rs 4,240 crore on Tuesday, marking their biggest single-day net purchase in nearly two months, provisional NSE data showed. Domestic institutional investors, however, sold shares worth Rs 1,250 crore.  

Among stocks in focus, Larsen & Toubro will be watched after its quarterly profit rose 33% year-on-year, supported by strong order inflows and infrastructure demand. SBI Life Insurance is also on the radar after reporting higher quarterly profit, aided by a shift towards higher-margin retail products.  

Maruti Suzuki, an automaker, expects stronger sales volumes and additional price increases to improve profitability in the second half of FY27, after higher costs pushed its September-quarter profit below market expectations.  

Bajaj Auto, a two-wheeler maker, reported better-than-expected quarterly earnings, supported by robust export demand and favourable currency movements.  

PTC India Financial Services’ net profit fell 50% year-on-year in the September quarter.  

Raymond’s second-quarter profit surged approximately 97% from a year earlier.  

Alembic Pharmaceuticals, a drugmaker, secured US regulatory approval for valganciclovir oral solution, a medicine used to treat certain retinal infections that can cause inflammation and potentially lead to permanent vision loss.  

Subros, an automotive air-conditioning systems manufacturer, won a Rs 1,225 crore contract from Maruti Suzuki to supply heating, ventilation and air-conditioning (HVAC) assemblies. 

Asian Markets Rally 

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.6% in early trade, while Japan’s Nikkei 225 advanced 1.3% and South Korea’s KOSPI surged 5.7%. South Korean chipmaker SK Hynix reported a more than seven-fold jump in quarterly operating profit, reinforcing optimism over robust demand for AI-related semiconductors. 

Developments across the technology sector have further supported risk appetite, with funding announcements involving Meta Platforms, SpaceX and Broadcom, alongside AI startup Anthropic’s initial public offering filing, drawing investor attention to the sector’s growth prospects. 

US Nasdaq futures rose 0.3%, while EURO STOXX 50 futures gained 0.8%, pointing to a positive start for European equities as investors positioned themselves ahead of key corporate earnings and the Fed’s policy announcement. 

Wall Street Rises Ahead of Fed Decision 

US stocks ended higher on Tuesday as investors returned to AI-linked shares and assessed corporate earnings ahead of the Federal Reserve’s latest policy decision. The technology-heavy Nasdaq led the gains, supported by optimism surrounding chipmakers and the broader AI investment cycle. 

The Fed is widely expected to leave interest rates unchanged at its October meeting, but investors will scrutinise its commentary for clues about the future policy trajectory. Persistent inflationary pressures, elevated energy prices and geopolitical tensions have complicated the outlook, keeping the central bank’s guidance firmly in focus. 

The US dollar remained near a two-week high, adding to concerns for emerging markets, where currency movements and global interest-rate expectations can influence foreign investment flows. 

Crude Oil Above $115 Fuels Inflation Concerns 

Oil prices extended gains on Wednesday, with Brent crude futures rising 1.3% to $115.4 a barrel and US West Texas Intermediate crude advancing 1.2% to $101.1. Prices remain elevated amid concerns over shipping disruptions and the continuing conflict involving the US, Israel and Iran, with the prospect of a diplomatic breakthrough yet to ease supply concerns materially. 

For India, a major crude importer, persistently high oil prices threaten to push up inflation, widen the import bill and put pressure on the rupee. They can also squeeze corporate margins, particularly in sectors sensitive to fuel and raw-material costs, while complicating the broader interest-rate outlook. 

Source

• Exchanges