Pre-Open Points To Positive Start Amid Asian Gains, Jio IPO

Mumbai, October 21: Indian shares rose at pre open pointing to a positive start as Asian shares lift sentiment. 

Nifty 50 rose 0.6% and Sensex advanced 0.5% at pre open.  

Domestic equities had come under pressure on Monday, with the Sensex and Nifty 50 falling more than 1% each after private lenders reported a contraction in net interest margins.  

Investors will also track Jio Platforms‘ $3.2 billion initial public offering, which opens for subscription on Wednesday. The telecom, cloud and artificial intelligence business has already raised $853.3 million from anchor investors, including the Abu Dhabi Investment Authority, BlackRock and Fidelity, ahead of what is expected to be India’s largest-ever IPO.  

Bajaj Finance will also remain in focus after the non-banking financial company reported a 28.7% year-on-year increase in quarterly profit, supported by strong growth in its loan book.  

L&T Technology Services will be in focus after the engineering services firm reported higher revenue and profit for the July-September quarter, while projecting a strong second half of FY27 on the back of a healthier order pipeline and the ramp-up of large deals.  

Hindustan Zinc reported more than a two-fold jump in quarterly profit, benefiting from firmer metal prices. The company also lowered its annual zinc production cost forecast, citing higher output and improved realisations from by-products.  

Infosys announced an expanded strategic collaboration with US financial services major Truist to establish a global capability centre in India, strengthening its presence in the financial services technology segment. 

Asian Markets Rally on Earnings Optimism 

Asian equities advanced on Wednesday, supported by gains on Wall Street and optimism over corporate earnings. The MSCI index of Asia-Pacific shares outside Japan climbed 1.16%, while South Korea’s Kospi surged 3.6% and Japan’s Nikkei 225 gained 1.17%. 

US equity futures also pointed to further gains, with S&P 500 e-mini futures rising 0.4%. Investor sentiment received support from corporate results, with 86% of S&P 500 companies that had reported earnings beating estimates, according to LSEG data. 

Japan’s exports rose 16.7% year-on-year in September, driven by demand for semiconductors and artificial intelligence-related products. However, the increase fell short of market expectations, tempering the otherwise upbeat trade data. 

Wall Street Mixed as Technology Stocks Face Pressure 

US markets ended Tuesday’s session on a mixed note as investors weighed encouraging corporate earnings against weakness in artificial intelligence-linked stocks and concerns over the cost of financing the sector’s expansion. 

The S&P 500 rose 0.3% to 7,712.57, while the Dow Jones Industrial Average advanced 1% to 52,495.88. The Nasdaq Composite edged lower by less than 0.1% to 26,424.82 as losses in major technology stocks offset gains elsewhere. 

Investors awaited results from technology heavyweights Tesla and Meta Platforms for further clues about corporate spending, profitability and the sustainability of the artificial intelligence investment cycle. The results could influence sentiment towards technology stocks in both US and Asian markets. 

Crude Oil Above $110 on Supply Concerns 

Crude oil prices remain a key concern for Indian equities. Brent crude rose 1.4% to $110.30 a barrel in Asian trading on Wednesday, extending gains after touching a five-month high during Tuesday’s volatile session. US West Texas Intermediate crude also remained elevated amid concerns over supply disruptions. 

Geopolitical risks, including Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf, have sustained the risk premium in oil prices despite intermittent hopes of diplomatic progress in the Middle East. 

Source

• Exchanges