India's equity benchmarks set for muted start; ITC in focus
India's benchmark indexes are likely to open little changed on Wednesday, as positive global sentiment is expected to be offset by fund flows to large block deals and the primary market.
Gift Nifty futures were trading at 24,850.5 as of 8:06 a.m. IST, indicating that the Nifty 50 will open near its Tuesday's close of 24,826.2.
Asian shares continued an overnight rally on Wall Street, with the MSCI Asia ex-Japan adding 0.3%, buoyed by signs of easing trade frictions between the US and Europe, while US Treasury yields declined.
Yields move inversely to prices, and lower yields bode well for equities in emerging markets such as India.
Domestic equities were under pressure on Tuesday due to profit booking amid higher valuations, and fund flows shifting to the primary market and large block deals, analysts said.
Consumer goods maker ITC will be in focus after British American Tobacco said on Tuesday it intends to sell a 2.3% stake in the company, worth about $1.4 billion in a block trade deal.
Financials, IT stocks weigh on Indian equity benchmarks
This would be the second major block trade in India this week, after IndiGo co-founder Rakesh Gangwal sold a 5.7% stake in the low-cost carrier worth $1.36 billion.
In the primary market, a $409 million initial public offer of Leela hotels-owner Schloss Bangalore will close for subscription later in the day.
Foreign investors bought Indian shares worth 3.48 billion rupees ($40.8 million) on Tuesday, as per provisional data, while domestic institutional investors bought stocks worth 101 billion rupees.
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