Indian equity markets are likely to get a pessimistic start on Tuesday amid elevated crude oil prices, geopolitical uncertainty and caution ahead of the US Federal Reserve's policy decision. Investors will be eyeing India Inc September quarter performance as prominent companies such as Larsen & Toubro, Maruti Suzuki India, SBI Life Insurance Company, Bajaj Auto, Cipla, ACC, etc. will declare their results today.
Some of the key factors to be watched:
Brent crude prices remained near $115 a barrel: Brent crude futures hovered near a six-month high after attacks on Saudi Arabia dampened hopes for an immediate easing of tensions in the region. Though, hopes of resolution in the US-Iran war, capped the upside.
India, US fine-tuning trade agreement; most discussions over: Commerce and Industry Minister Piyush Goyal said India and the US have concluded most of the discussions for a proposed bilateral trade pact, and they are now fine-tuning the agreement.
Centre committed to reducing fiscal deficit: Union Finance Minister Nirmala Sitharaman has said the Centre is committed to reducing the fiscal deficit, as evidenced by the annual budgets, stressing that the national debt will be limited to 50 per cent of the GDP by 2030.
Govt amends motor vehicle rules to permit pure ethanol flex-fuel vehicles: The Road Transport Ministry has notified changes to the Central Motor Vehicles Rules, allowing flex-fuel vehicles that can run on up to E100 (nearly pure ethanol). E100 fuel allows vehicles to run on nearly pure ethanol.
Defence stocks will be in focus: Shares of defence companies will hog the limelight as the Defence Acquisition Council (DAC) granted in-principal approval to capital acquisition proposals worth approximately Rs 2.12 lakh crore for the armed forces.
On the global front: The US markets ended higher on Monday, boosted by gains in AI-related stocks after Anthropic's IPO filing. Asian markets are trading mixed on Tuesday following a healthy run-up on Wall Street, while gains were concentrated ahead of slew of key earnings and central bank decisions this week.
Back home, snapping a four-day losing streak, Indian equity benchmarks staged a sharp recovery and ended with gains of over half percent each on Monday, driven by value buying and rally in Metal, Telecom and Healthcare stocks. However, elevated crude prices, geopolitical uncertainty and caution ahead of the Fed, ECB and BoJ policy decisions kept sentiment measured. Finally, the BSE Sensex rose 482.92 points or 0.66% to 73,606.75 and the CNX Nifty was up by 153.20 points or 0.68% to 22,753.20.
Some of the important factors in trade:
India, Uzbekistan emphasise timely implementation of bilateral agreements: External Affairs Minister S. Jaishankar and his Uzbek counterpart, Bakhtiyor Saidov, discussed key issues on the bilateral agenda during a meeting in Baku, Azerbaijan, and emphasised the need for the timely implementation of agreements reached at the highest level.
German companies view India as manufacturing, R&D & innovation hub: Commerce and Industry Minister Piyush Goyal has said that German companies are increasingly viewing India as a strategic destination for manufacturing, research and development (R&D), and innovation, while also acknowledging its importance as a major consumer market.
Strong macroeconomic fundamentals, policy interventions help cushion India against global headwinds: The article published in the Reserve Bank of India's (RBI) October Bulletin has said that strong macroeconomic fundamentals and targeted policy interventions are helping cushion India against global headwinds, including rising inflation due to the West Asia crisis and ongoing trade tensions.