Pre-Open Points To Positive Open After RBI Measures

Mumbai, October 12: Indian shares rise at pre open signalling a higher start for benchmarks as the central bank unveiled steps to support the rupee over the weekend. 

Nifty 50 rose 0.4% and Sensex advanced the same at pre open.  

Over the weekend, the RBI stepped up efforts to stabilise the rupee by curbing oil companies’ access to dollars in the spot market and tightening currency hedging norms, as the Indian currency remained close to record lows.  

Avenue Supermarts, the operator of DMart, reported a 7.6% year-on-year rise in net profit to Rs 804 crore in the September quarter.  

Poonawalla Fincorp posted a five-fold year-on-year jump in consolidated net profit to Rs 375 crore in the second quarter.  

Mahindra & Mahindra, an automaker, reported a 19.2% year-on-year decline in production in the September quarter, according to its business update.  

Can Fin Homes, a housing finance company, reported a 9.2% year-on-year increase in quarterly profit to Rs 275 crore. 

Asia Declines 

Asian markets started the week on a cautious note as investors assessed the sustainability of the technology-led rally ahead of a busy earnings calendar and weighed geopolitical developments and their implications for global energy supplies. South Korea’s Kospi fell 2%, while China’s CSI 300 index slipped 0.08%. Japanese markets remained closed for a holiday, contributing to relatively thin regional trading. 

Weakness across Asian equities reflected lingering concerns over stretched valuations and the outlook for technology stocks. Taiwan’s Taiex also declined 0.3% as investors awaited quarterly results from major semiconductor companies, with expectations for earnings and artificial intelligence-related investments likely to remain in focus. 

US, European Futures Trade Higher 

US stock futures edged higher, with S&P 500 futures gaining 0.3% and Nasdaq futures rising 0.4%, pointing to a potentially firmer start on Wall Street when regular trading resumes. Investors are preparing for the September-quarter earnings season, with major US banks scheduled to report results from Tuesday. 

Third-quarter earnings for S&P 500 companies are expected to have increased by more than 30% year-on-year, according to LSEG IBES estimates, although much of the projected growth is concentrated in the technology sector. Investors are increasingly scrutinising whether returns from artificial intelligence investments will justify the substantial borrowing and capital expenditure required to fund the expansion. 

European equity futures also traded higher. EURO STOXX 50 futures rose 0.6%, while Germany’s DAX futures advanced 0.6% and Britain’s FTSE futures gained 0.2%. The gains indicated some resilience in global risk appetite, even as weakness across Asian markets pointed to a cautious start to the trading week. 

Crude Oil Prices Ease But Remain Elevated 

Crude oil prices retreated after an initially firmer start, easing some pressure on energy-importing economies such as India. Brent crude futures fell around 1.7% to $103 a barrel, while US West Texas Intermediate crude declined 2% to $90. 

Oil prices remained volatile amid geopolitical uncertainty following strikes on shipping and airports in the Gulf. Investors also assessed US President Donald Trump’s proposal for an energy ceasefire between Russia and Ukraine, while the possibility of changes in Russian diesel exports added to uncertainty surrounding global energy supplies. 

For Indian equities, softer crude prices could offer some relief by easing concerns over imported inflation, the rupee and corporate margins. However, oil prices remain elevated, leaving the domestic market vulnerable to renewed geopolitical tensions and potential supply disruptions. 

Source

• Exchanges