Indian shares set for higher open tracking Asian markets

Stock Market: Indian shares are expected to open higher on Monday, taking cues from gains in Asian markets following China's implementation of measures to stabilise its markets and optimistic US economic data signalling potential early interest rate cuts.

As of 8:10 am, GIFT Nifty was trading at 21,641.00 points, indicating an opening above Thursday's close of 21,352.60 for the NSE Nifty 50.

The MSCI Asia ex-Japan index rose by 0.5 per cent on Monday, buoyed by China's announcement that it will fully suspend the lending of restricted shares to stabilise its stock markets.

Additionally, the US Federal Reserve's preferred inflation gauge indicated a moderation in prices in December, fuelling expectations of early rate cuts. 

According to the CME's FedWatch tool, the probability of a 25 basis points rate cut in March increased to 47.7 per cent from 46.2 per cent a week earlier.

Last week, the Nifty and the BSE Sensex witnessed their worst performance since late October, primarily dragged down by financials and information technology stocks, compounded by continued selling by foreign institutional investors (FIIs). 

FIIs sold shares worth approximately Rs 2,144 crore (around $258 million) on Thursday, marking their seventh consecutive selling session, while domestic institutional investors (DIIs) remained net buyers, acquiring shares worth Rs 3,475 crore.

Looking ahead, Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, suggested that Indian markets may witness further consolidation before the Fed's rate decision on Wednesday, where the central bank is expected to maintain the status quo and provide hints regarding the timeline for rate cuts.

Key results expected on Monday include Bajaj Finance, Bharat Petroleum Corporation, ITC, and NTPC.

Stocks to watch 

Tata Technologies: Company reported 14.7 per cent year-on-year rise in consolidated profit in December quarter, backed by strong demand from the automobile sector.

Adani Power: Thermal power producer posted a sharp rise in December quarter profit, helped by strong industrial demand.

HDFC Bank: Reserve Bank of India (RBI) gave its nod to Life Insurance Corporation of India (LIC) to buy up to 9.99 per cent stake in bank.