Sensex, Nifty Seen Opening Up With Earnings In Focus

Indian shares look set to open a tad higher on Tuesday, as investors react to the latest earnings results and await the outcome of a two-day policy meeting of the U.S. Federal Reserve that gets underway later today.

The Fed is widely expected to raise interest rate by another 75 basis points – its fourth straight rate hike – to fight soaring inflation.

Traders and investors wait to see what comments the FOMC and Powell make regarding the future path of U.S. monetary policy given a weakening economic backdrop.

On the earnings front, Bharti Airtel, India’s second largest telecom operator, posted an 89 percent year-on-year rise in consolidated net profit for the September quarter, while Tata Steel’s Q2 profit plummeted 87 percent on flat revenue.

Engineering and Infrastructure conglomerate Larsen & Toubro beat estimates for the September quarter on most parameters led by a 23 percent growth in order inflow.

Benchmark indexes Sensex and Nifty jumped around 1.3 percent each on Monday while the rupee chalked up its tenth monthly decline after slipping versus the dollar.

Asian stocks traded broadly higher this morning and the dollar was firm against the Japanese yen, while oil prices edged up after falling overnight on data showing oil output in the United States climbed to nearly 12 million barrels per day in August, the highest since the onset of the Covid-19 pandemic.

U.S. stocks drifted lower overnight as investors weighed an impending rate hike against solid earnings results.

The Dow dipped 0.4 percent but posted a monthly gain of 14 percent, notching its best month of October on record. The S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite gave up 1 percent.

European stocks closed broadly higher on Monday despite weak Eurozone inflation and GDP data. The pan European Stoxx 600 gained 0.4 percent.

The German DAX finished marginally higher and the U.K.’s FTSE 100 added 0.7 percent while France’s CAC 40 index slipped 0.1 percent.

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