The Indian equity market is expected to open higher on Tuesday amid stable global cues. GIFT Nifty is trading with gains, indicating a positive start for domestic equities. However, the weekly expiry of Nifty today and the Reserve Bank of India’s (RBI) monetary policy decision due tomorrow could increase volatility during the trading session.
GIFT Nifty is trading around 53 points higher at 22,629. Dow Futures in the US are also trading in positive territory. Asian markets are providing support to Indian equities, with Japan’s Nikkei, Hong Kong’s Hang Seng and the Shanghai Composite trading higher.
Crude oil prices remain in focus, with Brent crude trading at around $100.82 per barrel. Higher oil prices can increase inflation and current account-related risks for an import-dependent country such as India. The movement in crude oil prices is therefore expected to remain a factor for the market.
Nifty’s weekly expiry today could result in increased volatility in the market. Changes in options positions and short-term trading during expiry can lead to sudden movements in major indices.
Investors are also focused on the RBI’s monetary policy decision due tomorrow. The central bank’s stance on interest rates, inflation and economic growth could affect banking, automobile, real estate and financial stocks.
Shares of Rentomojo, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Godrej Consumer Products, Jupiter Hotels, Vedanta, Zydus Lifesciences and Marico are likely to remain in focus due to company-specific developments.
In the banking sector, the second-quarter business updates from Axis Bank and Kotak Mahindra Bank will remain important. Both banks have released business-related figures for the second quarter.
Kotak Mahindra Bank’s net advances increased 24.7% to ₹5.77 lakh crore in the second quarter, compared with ₹4.62 lakh crore in the same period last year.
The bank’s CASA, comprising current account and savings account deposits, increased 11.3% to ₹2.49 lakh crore from ₹2.23 lakh crore previously. Total deposits increased 23.2% to ₹6.51 lakh crore.
Axis Bank reported second-quarter business growth, with gross advances increasing 22.7% to ₹13.84 lakh crore from ₹11.28 lakh crore previously.
The bank’s total deposits increased 20.7% to ₹14.52 lakh crore. CASA deposits also increased 10.6% to ₹5.29 lakh crore, compared with ₹4.79 lakh crore in the previous period.
