India Stocks: Indian shares likely to open higher on strong business updates from lenders
INDIA STOCKS-Indian shares likely to open higher on strong business updates from lenders July 6 (Reuters) - Indian shares are set to open with a positive tone on Monday as investors react to quarterly business updates from key lenders and companies, while crude oil prices remained below $72 per barrel.
GIFT Nifty futures GIFc1 were at 24,322.5, as of 7:50 a.m. IST, indicating the Nifty 50 .NSEI could open above Friday's close of 24,270.85.
Over the weekend, several lenders including HDFC Bank HDBK.NS, Axis Bank AXBK.NS, Kotak Mahindra Bank KTKM.NS, among others, reported provisional numbers for the April-June period ahead of quarterly earnings.
India's biggest private lender HDFC Bank reported a 15.4% increase in gross advances during the June quarter, with period-end deposits rising 14.7%.
Axis Bank reported 18.8% growth in gross advances, while Kotak Mahindra Bank's net loan growth stood at 15.1%.
Analysts at brokerage firm Jefferies said HDFC Bank, IndusInd Bank and Bandhan Bank saw a better-than-expected pickup in loan growth, while Kotak Mahindra Bank's growth softened slightly.
Investors will also take confidence from foreign inflows worth 13.55 billion rupees ($142.32 million) on Friday, as per provisional data. This would mark a third consecutive session of net buying.
The drop in crude oil prices below $72 per barrel, expected inflows from foreign currency non-resident (bank) deposits, and weakening of global AI trade are expected to persuade foreign investors to turn buyers on India, said V.K. Vijayakumar, chief investment strategist at Geojit Investments.
STOCKS TO WATCH
** Dabur India DABU.NS expects a double-digit percentage rise in first-quarter profit after tax, as price increases help cushion the impact of elevated inflation and support operating margins
** Godrej Consumer GOCP.NS says consolidated revenue to rise in the quarter ended June 30, driven by high-single-digit underlying volume growth
** IndusInd Bank INBK.NS reports sequential growth of 3.3% and 3.8% in net advances and deposits, respectively, for June quarter. Compared to the year-ago period, advances were down 2.3%, while deposits rose 4.5%
($1 = 95.2100 Indian rupees)
(Reporting by Vivek Kumar M; Editing by Ronojoy Mazumdar)