Indian shares set to open higher after growth boost
Indian equity benchmarks are set to open higher on Monday, underpinned by a stronger-than-expected domestic economic growth in the March quarter.
Gift Nifty futures were trading at 24,841.5 as of 8:07 a.m. IST, indicating a firm start above Nifty 50's (.NSEI), opens new tab close of 24,750.7 on Friday.
India's economy surged 7.4% in the January-March quarter, much faster than forecasts and driven by construction and manufacturing.
Analysts expect the upbeat data, along with favorable macro indicators such as early monsoon onset and a benign inflation outlook, to support market momentum despite global uncertainties.
Markets are pricing in a 25-basis-points rate cut by the Reserve Bank of India (RBI) at its June 6 policy meeting, which could lift sentiment in rate-sensitive sectors such as financials, autos, real estate and consumer goods.
Although the Nifty and Sensex (.BSESN), opens new tab dipped slightly on Friday, both indexes gained for the third straight month, buoyed by institutional flows, improving corporate earnings and easing trade tensions. However, the indexes remained about 6% below their record highs hit on September 27, 2024.
Foreign portfolio investors (FPI) turned net sellers on Friday after five sessions of buying but were net buyers for May, with inflows totaling $2.34 billion - the highest monthly total since September 2024.
Sector-wise, auto stocks will be in focus as investors assess the monthly sales figures.
Broader Asian markets opened lower amid investor caution ahead of key U.S. jobs and manufacturing data due this week and ongoing trade policy uncertainties.
** Apollo Hospitals (APLH.NS), opens new tab posts fourth-quarter profit above estimates, helped by higher demand for its healthcare services.
** Beauty products retailer Nykaa (FSNE.NS), opens new tab reports a fourth-quarter profit that nearly tripled year-on-year as premium brands continued to attract urban consumers.
** Indian Oil Corporation (IOC.NS), opens new tab finalises the country's largest green hydrogen project, setting up a 10,000 tonnes per annum green hydrogen unit in Panipat.
** Cipla (CIPL.NS), opens new tab gets one observation in form 483 after a U.S. drug regulator inspection at its Bommasandra plant in Bengaluru.
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