Indian shares are set to open higher on Monday after oil prices fell and the Reserve Bank of India introduced new currency-support measures. GIFT Nifty futures reached 22,624.5, signaling a positive start. While the recent rebound is encouraging, Pabitro Mukherjee said, "Market needs stronger price action to establish a durable uptrend."
Oct 12 (Reuters) - Indian shares are set to open higher on Monday after snapping their longest weekly losing run in 25 years on Friday, as oil prices fell on expectations of a Russia-Ukraine energy ceasefire and the central bank unveiled new currency-support measures.
GIFT Nifty futures were at 22,624.5 at 7:53 a.m. IST, indicating a positive start for the Nifty 50, which closed at 22,520.45 on Friday.
Brent crude futures fell 1.6% to $103 a barrel, after US President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other's energy facilities following a US diesel-supply deal with Moscow, easing immediate supply pressure.
However, the Middle East conflict kept crude above $100 a barrel, keeping sentiment capped.
Over the weekend, the Reserve Bank of India unveiled fresh measures to shore up the rupee, redirecting oil companies' dollar purchases away from the spot market and tightening hedging rules as the currency hovers near record lows.
The RBI's steps to curb spot-dollar demand and support the rupee ease currency volatility, helping temper inflation and foreign outflows -- both positives for equity-market sentiment.
"The recent rebound after an eight-week losing streak is encouraging, but not sufficient to confirm a sustained recovery, and at this stage, it appears more like a relief rally," said Pabitro Mukherjee, deputy vice president of research at Bajaj Broking.
The Nifty and Sensex rose 0.4% and 0.8% last week, helped by upbeat quarterly updates from financials and a rise in IT company Tata Consultancy Services as the software firm's earnings underscored growing AI-related revenue contribution.
"Market needs stronger price action and supportive macroeconomic developments to establish a durable uptrend," Mukherjee said.
Foreign portfolio investors offloaded domestic stocks for 11 straight sessions, with outflows of 35.69 billion Indian rupees on Friday.
Domestic institutional investors bought shares worth a net 47.43 billion rupees ($490.18 million), as per NSE's provisional data.
STOCKS TO WATCH
** Avenue Supermarts posts 7.6% year-on-year rise in net profit in the September quarter to 8.04 billion rupees
** Poonawalla Fincorp reports a five-fold Y/Y jump in consolidated net profit in the second quarter to 3.75 billion rupees
** Mahindra & Mahindra says its production fell 19.2% year-on-year in the September quarter, in its business update