The equity benchmarks are likely to kickstart November on a positive note on Monday, after registering strong gains last month, with quarterly earnings and monthly auto sales data likely guiding sentiment.
Gift Nifty futures were trading at 25,856.5 points as of 7:54 a.m. IST, indicating that the benchmark Nifty 50 will open above Friday’s close of 25,722.1.
The 50-stock index gained 4.5% in October – its best performance since March – and now sits 2.1% below its lifetime high hit in September 2024.
Investor optimism was buoyed by steady quarterly earnings and renewed buying by foreign portfolio investors (FPIs).
The FPIs bought Indian shares worth $1.65 billion in October, reversing three months of selling, data from the securities depository showed.
“There are clear signs of earnings recovery now. If the brisk demand conditions in the market sustains, earnings will improve, which, in turn, will make valuations fair. In such a scenario FPIs will turn buyers,” said VK Vijayakumar, chief investment strategist at Geojit Investments.
Meanwhile, automobile companies will be in focus on the day following the release of their October sales data over the weekend.
“With a strong festive season post GST (Goods and Services Tax) cuts, October registrations grew 52% year-on-year for two-wheelers and 15% for passenger vehicles,” Jefferies said.
STOCKS TO WATCH
** FMCG major Hindustan Unilever has received a tax demand order of $226 million for the financial year 2020-21 from India’s tax authority
** Home services provider Urban Company posts wider loss for the quarter ended September, even as its revenue grows 37%
** R R Kabel reports surge in second-quarter profit, boosted by strong demand for its mainstay wires and
cables