BENGALURU (Reuters) – Indian shares are set to open higher on Friday benefiting from a broader risk-on sentiment after stronger-than-expected U.S. economic growth data eased concerns of a recession, while investors remained watchful ahead of release of the federal budget and central bank meetings due next week.
India’s NSE stock futures listed on the Singapore exchange were up 0.44% at 18,032.50, as of 07:34 a.m. IST.
Indian markets were closed on Thursday for a public holiday.
Benchmark indexes the Nifty 50 index and the S&P BSE Sensex, have lost 0.7% each in the truncated week so far.
Meanwhile, the U.S. economy grew faster than expected in the fourth quarter as consumers boosted spending on goods, data showed, though it could be the last quarter of solid GDP growth before the lagged effects of the Federal Reserve’s steep interest rate hikes are fully felt.
Wall Street overnight ended in the positive territory as strong U.S. economic data eased recession worries. In other Asian markets, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.53% to touch a nearly nine month high. [MKTS/GLOB]
Data on Thursday showed the U.S. economy fared better in the fourth quarter than analysts expected, and the labor market remained tight, despite some signs of weakening demand.
Investors will shift focus to the Union budget on Feb. 1, with the government’s fiscal consolidation path and borrowing calendar for fiscal 2024 as triggers.
Also due next week are the monetary policy meetings of the Fed, Bank of England, and European Central Bank that will shed light on the path of interest rates the central banks will likely take.
Foreign institutional investors sold 23.94 billion rupees ($294.04 million) worth of shares on a net basis on Wednesday, while domestic institutional investors bought 13.78 billion rupees of equities.
STOCKS TO WATCH
** Adani Enterprises: Co to launch its follow-on public offer of 200 billion rupees on Friday, which closes on Jan. 31. The price band of the FPO is 3,112-3,276 per share. Co has also said that it’s evaluating action against Hindenburg Research over its accusations of improper use of offshore tax havens.
** Tata Motors: Co beat analysts expectations and posted profit for the first time in two years in the third quarter.
** Dr. Reddy’s Laboratories: Co reports consolidated net profit that beat estimates for third quarter on upbeat North America business.
** Bajaj Auto: Co reports a bigger-than-expected third-quarter profit on Wednesday, as strong domestic demand and an increase in prices of its motorcycles and scooters made up for weak exports.
** DLF: Co posts rise in consolidated net profit in December quarter on reduced costs, stable demand.
($1 = 81.4180 Indian rupees)
(Reporting by Rama Venkat in Bengaluru;Editing by Dhanya Ann Thoppil)
