Indian equities are expected to open largely flat on October 26, as GIFT Nifty trades with marginal fluctuations and crude oil prices decline. Investors will also track quarterly earnings announcements from several companies during the session.
Indian equity markets enter the new trading week with mixed signals following last week’s decline. Investors will monitor whether the Sensex and Nifty recover or whether selling pressure continues. At around 7:30 a.m., GIFT Nifty was trading near 22,600, indicating the possibility of a largely unchanged opening.
Weakness in overseas markets and elevated crude oil prices remain relevant factors for the domestic market. Asian equities also lacked firm direction in early trading on Monday, with key indices in Japan and South Korea recording declines.
US markets closed lower on Friday. Investors will also monitor the US Federal Reserve’s meeting scheduled for this week, with its interest rate decision expected to influence equity markets globally.
According to technical analysts, the Nifty faces initial resistance near 22,850, where its 20-day exponential moving average (EMA) is positioned. The previous week’s high of 23,175 could present another resistance level.
On the downside, support is seen near 22,372, which was also Friday’s low. A break below this level could increase selling pressure in the market. These levels are based on technical assessments and may change during the trading session.
International crude oil prices declined on Monday. US West Texas Intermediate (WTI) crude futures fell by $1.60, or 1.55%, to $101.67 per barrel. Brent crude declined by $1.56, or 1.34%, to $115.16 per barrel.
Oil prices had reached approximately six-month highs last week. Concerns over potential supply disruptions increased following attacks on oil facilities and other locations in Saudi Arabia. Although prices declined on Monday, Brent crude remained near $115 per barrel.
Several companies are scheduled to announce their September-quarter results on October 26. These include Tata Consumer Products, ITC Hotels, One 97 Communications, the parent company of Paytm, Mankind Pharma, REC, Ather Energy and Nazara Technologies.
Investors will also track results from Bank of Maharashtra, Indian Overseas Bank, Aavas Financiers, Aditya Birla Real Estate, Aegis Logistics, Eris Lifesciences, Sona BLW, Sunteck Realty, Tamilnad Mercantile Bank and WeWork India.
The reported earnings and business outlooks disclosed by these companies will be among the factors monitored by the market.
Infosys reported a profit of Rs 7,823 crore for the July–September quarter, compared with Rs 7,364 crore in the corresponding period last year. Revenue increased to Rs 49,244 crore. However, the company lowered its revenue growth guidance for the current financial year.
Kotak Mahindra Bank reported a 29.5% increase in standalone profit to Rs 4,212 crore. Net interest income rose 15.7% to Rs 8,459 crore.
Dr Reddy’s Laboratories reported a 36% decline in quarterly profit to Rs 913.4 crore. Revenue fell 1.5% to Rs 8,670.8 crore.
IndusInd Bank reported standalone profit of Rs 1,176.1 crore, compared with a loss of Rs 444.8 crore in the corresponding quarter a year earlier. The bank’s net interest income increased to Rs 4,569.5 crore.
Bank of India reported a 25.4% increase in profit to Rs 3,202.4 crore. Meanwhile, SBI Funds Management reported a 6% decline in profit to Rs 701.2 crore, although its revenue increased.
Tata Motors’ commercial vehicle business reported a profit of Rs 1,257 crore in the second quarter, compared with a loss of Rs 867 crore in the corresponding period last year. Revenue increased 36.3% to Rs 25,338 crore.
At Lupin, the US Food and Drug Administration (USFDA) inspected the company’s Goa unit between October 19 and October 23. Following the inspection, the regulator issued a Form 483 containing one observation. The company stated that it would respond within the prescribed timeframe.
KEC International received orders worth Rs 2,872 crore from Power Grid Corporation. The orders include the design, supply and installation of 765 kV transmission lines.
