Indian Shares Likely To Open On Positive Note

(RTTNews) - Indian shares are likely to open higher Wednesday morning, tracking positive global cues. U.S. stocks closed higher overnight on upbeat earnings news, and the major European markets gained as well, while Asian stocks are broadly higher today.

Stocks climbed higher on sustained inflow of foreign funds, and a positive lead from Wall Street where stocks closed higher on Monday amid expectations the Fed is nearing the end of its tightening cycle.

Sustained inflow of foreign funds and strong buying by domestic institutions lifted the Indian market to fresh record highs on Tuesday, and the undertone is likely to be firm again.

In earnings news, IndusInd Bank reported a net profit of Rs 2,124 crore for the quarter ended June 2023, up 32.5% compared to the year-ago quarter. The bank's gross non-performing assets ratio as a percentage of sales was 1.94% as of 30 June 2023, compared with 2.35% a year ago.

L&T Technology reported a 13% year-on-year increase in net profit at Rs 311.1 crore in the first quarter of the current financial year.

Bank of Maharashtra, Tata Coffee, Tata Communications, L&T Finance Holdings, Jubilant Pharma, and Alok Industries are among the companies slated to announce their quarterly results today.

After soaring to new all-time highs in early trades on Tuesday, Indian benchmark indices S&P BSE Sensex and the Nifty50 pared gains and briefly fell into the red around late morning on Tuesday, but recovered to post fresh closing highs after volatile swings.

The Sensex, which dropped to 66,574.47 after surging to 67,007.02, ended the session with a gain of 205.21 points or 0.31% at 66,795.14. The Nifty50 ended with a gain of 37.80 points or 0.19% at 19,749.25, after hitting a new intraday high of 19,819.45.

U.S. stocks rallied overnight with investors reacting positively to earnings news from big-name companies like Bank of America and Morgan Stanley.

The Dow jumped 1.1%, the Nasdaq advanced 0.8% and the S&P 500 climbed 0.7% on Tuesday.

Data showing a smaller than expeced increase in retail sales, and a dip in industrial production in the month of June added to recent optimism about the Fed nearing the end of its interest rate hiking cycle.

The major European markets all moved to the upside on Tuesday. While the U.K.'s FTSE 100 Index advanced by 0.6%, the French CAC 40 Index and the German DAX Index both climbed by 0.4%.