The Indian equity market is likely to open under pressure on Monday, the first trading day of the week. At around 7:30 am, GIFT Nifty was trading at 24,237, down 75 points or 0.31%.
US-Iran tensions, rising crude oil prices and weakness in GIFT Nifty are among the factors influencing the market ahead of Monday’s session. Shares of Reliance Industries, HDFC Bank, Cipla, LIC Housing Finance and several other companies are expected to remain in focus due to key corporate developments.
On Sunday, reports emerged that the US military had targeted two Iranian rocket launch systems in the Larak Island area near the Strait of Hormuz. This was reported to be the first known US military action in Iranian territory since the end of July. The development has increased geopolitical tensions in West Asia.
The Strait of Hormuz is one of the world’s most important oil transportation routes. Any instability in the region could affect crude oil supplies and prices. For major oil-importing countries such as India, higher crude prices could affect market sentiment and inflation-related concerns.
According to technical analysts, several levels will remain important for the Nifty in the coming sessions. If the index sustains strength above Friday’s high and the 50-day EMA located around 24,190, it could move towards 24,300 to 24,350. On the downside, a fall below the weekly low of 24,076 could bring 24,000 and subsequently 23,800 into focus as important support zones. Investors will also track global cues, crude oil movements and foreign investor activity.
LEAP India, Milky Mist Dairy Food, Setco Automotive, Cresanda Railway Solutions, Duchepalli Publishers and Standard Surfactants may announce their quarterly financial results on Monday. Their revenue, profit and future outlook will be monitored by the market.
Reliance Industries’ digital and technology subsidiary Jio Platforms has reportedly received an observation letter from market regulator SEBI on the draft red herring prospectus (DRHP) filed for its proposed IPO. The development marks progress towards the company’s potential public issue.
HDFC Bank will remain in focus amid leadership-related developments. The bank’s Managing Director and CEO, Sashidhar Jagdishan, has decided not to seek reappointment. Following the development, the market will focus on the bank’s future leadership strategy and indications regarding his successor.
Cipla’s US subsidiary Invagen Pharmaceuticals’ Manufacturing Unit-3 has been placed by the US FDA under the Voluntary Action Indicated (VAI) category following its inspection.
Axiscades Technologies plans to acquire up to a 90% stake in Bengaluru-based Cloud Wave Technologies for around ₹234 crore. The company may subsequently acquire the remaining stake.
Max Estates has entered into a share purchase agreement to acquire the entire shareholding in promoter-owned companies associated with approximately 84.71 acres of land in West Delhi.
Avantel has received an order worth around ₹117.88 crore from DRDO for the development, installation and commissioning of ground segment hubs for voice and data communication.
Ashoka Buildcon has received a Letter of Award (LoA) worth approximately ₹602.16 crore from Rail Vikas Nigam for the supply and commissioning of electromechanical systems.
Corporate updates related to Aurobindo Pharma, NBCC, Tata Chemicals and LIC Housing Finance will also remain in focus. LIC Housing Finance has approved the appointment of Sandeep Kumar as Additional Director and Managing Director and CEO.
