Thursday, December 8

Indian shares may edge higher at open, tracking Asia

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BENGALURU — Indian shares are expected open higher on Friday, taking cues from strength in other Asian equities, with investors awaiting domestic earnings reports for cues on corporate health and US jobs data for hints on future rate hikes.

India’s NSE stock futures, listed on the Singapore exchange , were 0.01% higher as of 0208 GMT. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.18%.

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The NSE Nifty 50 index ended 0.17% lower at 18,052.70 on Thursday, while the S&P BSE Sensex fell 0.11% at 60,836.41 in their second straight session of losses.

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The benchmark indexes have added 1.5% each so far this week and if those hold, they will post their third straight week of gains.

If the US payrolls data, due later in the day, paints an upbeat picture, it will likely reinforce the Federal Reserve’s hawkish outlook. The Fed had raised rates by 75 basis points on Wednesday and said its battle against inflation will require borrowing costs to rise further.

Meanwhile, the Reserve Bank of India’s monetary policy committee met on Thursday to discuss the bank’s report to the government for having failed to meet its inflation targets for three straight quarters for the first time since it was set up in 2016. Governor Shaktikanta Das had said the RBI would not immediately make details of its report public.

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On the earnings front, InterGlobe Aviation, Britannia Industries Ltd and GAIL (India) Ltd are among the companies expected to report their quarterly results later in the day.

Foreign institutional investors bought a net 6.78 billion Indian rupees ($82.01 million) worth of equities on Thursday, while domestic investors sold 7.32 billion rupees of shares, as per provisional data available with the National Stock Exchange.

Stocks to watch:

** Adani Enterprises reported a quarterly profit that more than doubled, helped by strong performance at its integrated resources management and airports divisions.

** Hero MotoCorp Ltd, the world’s largest two-wheeler maker by sales, reported a bigger-than-expected fall in second-quarter profit as expenses rose and sales volume dipped.

** Retail brokerage firm Angel One said average client funding book in October was at 15.75 billion rupees, down 15.4% from a year ago.

** Debt-laden telecom operator Vodafone Idea Ltd reported a wider loss for the second quarter, hit by a sustained decline in subscribers and higher expenses.

** Schneider Electric Infrastructure reported a profit in the second quarter, after winning a slew of orders following a pickup in economic activity. ($1 = 82.6770 Indian rupees) (Reporting by Rama Venkat in Bengaluru; Editing by Dhanya Ann Thoppil)