Nifty 50 to open higher, taking cues from Wall Street; Zee in focus

Nifty to open higher: The benchmark Nifty 50 is expected to open higher on Tuesday, aligning with the positive momentum on Wall Street. 

Meanwhile, the attention of investors will be squarely on Zee Entertainment as the $10 billion merger with Japan's Sony has been terminated, leading to downgrades by at least five brokerages.

As of 8:22 am, GIFT Nifty was trading at 21,780 points, indicating an opening above the Saturday session closing of 21,571.80 for the NSE Nifty 50.

Zee Entertainment is under the spotlight after Sony Group announced the cancellation of its $10 billion merger plans with Zee. 

The termination was attributed to unsatisfied "closing conditions" despite "good faith discussions." This development led to downgrades of Zee by several brokerages, shifting its rating from "buy" to “sell.”

Last week, both the Nifty 50 and the Sensex experienced a 1.2 per cent decline, marking their most notable weekly drop since late October 2023. 

The Nifty 50 had a full trading session on Saturday, losing 0.23 per cent, with pressure from information technology companies and Hindustan Unilever, which reported a smaller-than-expected profit rise.

Asian shares mirrored gains in Wall Street, which achieved a second consecutive record high on Monday, propelled by strength in tech stocks. Among the companies due to report earnings later in the day is Axis Bank, a Nifty 50 constituent.

Stocks to watch 

Cipla: The pharma major reported a higher-than-expected third-quarter profit, aided by strong North American and domestic demand.

Adani Ports and Special Economic Zone: S&P Global Ratings revised its outlook on co to stable from negative on signs of robust cash flow in next 12-24 months.

Hero MotoCorp: The company inks pact with CG Motors as its distributor in Nepal