Indian equity markets are expected to open higher on Monday amid positive global cues and a sharp decline in crude oil prices. Around 8 a.m., Gift Nifty was trading at 23,951, up 260 points or 1.10 percent, indicating a firm start for domestic markets.
Positive global signals and lower crude oil prices contributed to improved investor sentiment ahead of the opening trade. Gift Nifty was seen trading near the 23,950 mark with gains of about 260 points, signalling a positive opening for domestic equity markets.
A potential peace agreement between the United States and Iran is being viewed as a key global trigger. US President Donald Trump indicated that discussions between Washington and Tehran have advanced significantly. If finalised, the Strait of Hormuz could reopen at full capacity. The maritime route is considered critical for global oil and LNG supplies and accounts for nearly 20 percent of global energy trade.
Expectations surrounding a possible agreement contributed to a decline of more than five percent in international crude oil prices. Softer oil prices are considered favourable for import-dependent economies such as India as they may reduce pressure on inflation and the import bill. Lower fuel costs could also benefit sectors including aviation, paints, cement and logistics.
Quarterly earnings announcements from several companies will remain in focus on Monday. Companies scheduled to report fourth-quarter results include Aditya Birla Fashion and Retail, Amara Raja Energy & Mobility, Container Corporation of India, NBCC (India), Suzlon Energy, Hitachi Energy India and Rail Vikas Nigam Limited. Investors will monitor revenue, profit and outlook disclosures from these companies.
NTPC reported a 34.4 percent year-on-year increase in net profit for the March quarter to ₹10,615 crore, while revenue recorded a marginal decline. Meanwhile, Hindalco Industries reported an around 51 percent decline in profit, although revenue increased by more than 20 percent on the back of demand.
In the automobile sector, Eicher Motors reported an 11.6 percent increase in profit to ₹1,520 crore, while revenue rose 16 percent. The company benefited from higher sales and increased demand in the premium motorcycle segment. Financial results from Torrent Pharmaceuticals and Colgate-Palmolive India were mixed, while Divi's Laboratories recorded stable growth.
Stock exchanges also announced changes to various indices, which could affect related shares in the coming days. TVS Motor Company will be added to the Sensex 50 index, while Adani Enterprises will be removed. In addition, One 97 Communications, Ashok Leyland and CG Power and Industrial Solutions will be included in the BSE 100 index. These changes will take effect from June 22.
Separately, Exide Industries and Nuvama Wealth Management will be removed from the futures and options segment from July 29. In the hospitality sector, Lemon Tree Hotels said the Competition Commission of India approved the acquisition of a stake in Fleur Hotels.
Global cues, lower oil prices and corporate earnings announcements are expected to support firm trading in Indian equity markets on Monday.
