Indian shares are on track to open higher on Wednesday as focus shifts to the launch of Jio Platforms’ record IPO, although elevated crude oil prices could cap gains.
Optimism over a US-India trade deal could also support risk sentiment. US Secretary of State Marco Rubio told CNN News18 on Tuesday that he expected Washington and New Delhi to reach a trade deal within weeks, rather than months.
GIFT Nifty futures were at 23,017 at 7:57 a.m. IST, indicating a positive start for the benchmark Nifty 50 , which closed at 22,888.95 on Monday. Indian markets were closed on Tuesday for a local holiday.
The Nifty 50 and BSE Sensex shed more than 1% each on Monday after private lenders HDFC Bank and Axis Bank reported lower net interest margins over the weekend.
Jio Platforms’ $3.2 billion IPO opens for subscription later in the day. The telecoms, cloud and AI group raised $853.3 million from marquee anchor investors, including Abu Dhabi Investment Authority, BlackRock and Fidelity, ahead of what is set to be India’s record IPO.
Shares of Bajaj Finance will be in focus on Wednesday after the non-bank lender posted a 28.7% year-on-year rise in quarterly profit on Monday, supported by strong loan-book growth.
Higher crude oil prices, however, could weigh on sentiment.
Traders will also monitor oil prices after Brent crude futures rose more than 1% to $110 a barrel, with investors wary of Red Sea shipping disruptions and threats to oil infrastructure in Saudi Arabia.
Higher oil prices are a negative for India, which imports a bulk of its energy requirements, as it can increase import bill, strain fiscal deficit and hit corporate profits.