(Reuters) -Indian equities are poised to open higher on Monday, tracking gains across Asia, on optimism that a resolution to the historic U.S. government shutdown is near, though analysts expect consolidation to persist after October’s rally.
Gift Nifty futures were trading at 25,614.5 points as of 7:59 a.m. IST, indicating that the Nifty 50 will open above Friday’s close of 25,492.3.
Other Asian markets rose 0.9%, after the U.S. Senate on Sunday appeared poised to move forward with a measure aimed at reopening the federal government, a day after bipartisan talks to end the shutdown took a positive turn. [MKTS/GLOB]
While an end to the 40-day government shutdown could spur a short-term rise in markets, Indian stock benchmarks are likely to see further consolidation, said two analysts.
The Nifty and Sensex fell 0.9% last week after ending October about 4.5% higher, as profit-taking outweighed optimism around corporate earnings and the India-U.S. trade talks, per provisional data from the NSE.
Foreign portfolio investors snapped a six-session selling streak to become net buyers of Indian stocks on Friday, with inflows of 45.81 billion rupees ($521.2 million).
Domestic institutional investors also bought Indian equities worth 66.75 billion rupees.
Among individual stocks, Bajaj Auto will be in focus after the two-wheeler maker’s second-quarter profit rose on higher exports of its motorcycles amid sluggish domestic demand.
Beauty retailer Nykaa could also rise after its quarterly profit more than trebled, boosted by steady demand for makeup and skincare products and new tie-ups with global brands.
STOCKS TO WATCH
** Clothing retailer Trent reports an 11% rise in September-quarter profit, driven by higher sales from new stores and gains from trimming its stake in Zara joint venture
** State-owned alumina producer National Aluminium Company posts a 37% rise in second-quarter profit, helped by higher commodity prices
** State-owned warplane maker Hindustan Aeronautics signs agreement to buy 113 engines from General Electric to power an advanced variant of its home-produced Tejas fighter jets
** Lenskart Solutions is set for its stock market debut after its initial public offering was subscribed 28.26 times last week
($1 = 87.8950 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy)
