– India’s key stock indices may see only minor changes when they open on Wednesday, with upbeat international mood potentially being balanced out by investments directed towards significant bulk trades and new market listings.
As of 8:06 a.m. IST, Gift Nifty futures were at 24,850.5, suggesting that the Nifty 50 might start around its closing level from Tuesday at 24,826.2.
Asian stocks extended their gains from the previous night’s surge on Wall Street, where the MSCI Asia ex-Japan index rose by 0.3%. This uptick was supported by indications of reduced trade tensions between the U.S. and Europe, coupled with a decrease in U.S. Treasury yields. [MKTS/GLOB]
Returns operate oppositely to prices, and decreased returns signal positive prospects for stocks in emerging markets like India.
Domestic equities were under pressure on Tuesday due to profit booking amid higher valuations, and fund flows shifting to the primary market and large block deals, analysts said.
The consumer products firm ITC will likely attract attention following British American Tobacco’s announcement on Tuesday of their plan to offload a 2.3% holding in the enterprise. This equity, estimated at around $1.4 billion, is slated for disposal through a bulk transaction.
This will mark the second significant bulk transaction in India this week, following IndiGo co-founder Rakesh Gangwal’s sale of a 5.7% share in the budget airline amounting to $1.36 billion.
In the primary market, a $409 million initial public offering from Schloss Bangalore, which owns Leela Hotels, will conclude subscriptions later today.
On Tuesday, according to preliminary figures, foreign investors purchased Indian shares totaling 3.48 billion rupees ($40.8 million), whereas domestic institutional investors acquired stocks amounting to 101 billion rupees.
STOCKS TO WATCH
Life Insurance Corporation of India reported a higher profit for the fourth quarter, aided by reduced costs related to employees, despite a decline in premiums due to regulatory changes.
The state-controlled company NMDC has seen a decrease in profits because of falling prices for items such as iron ore.
($1 equals 85.3020 Indian Rupees)
(Reported by Vivek Kumar M; Edited by Varun H K)
