Market to edge up as oil prices ease; IPO rush to cap upside
Tata group stocks to remain in focus; crude oil prices ease amid sustained geopolitical tensions in West Asia
Indian shares may open slightly higher on Friday as a decline in crude oil prices eases market concerns, though ongoing geopolitical tensions in West Asia and a strong appetite for domestic initial public offerings (IPOs) could limit upward momentum. Tata Group companies, including Tata Sons, have caught market attention following the reappointment of N. Chandrasekaran as chairman and their consideration of a public listing. Meanwhile, Shapoorji Pallonji Group has floated the idea of divesting part of its stake.
As of 8:30 a.m. IST, GIFT Nifty futures were hovering around 23,329.5 points, suggesting a favorable opening for the Nifty 50 index, which had closed at 23,270.60 the previous day. Brent crude oil prices, however, slipped by 0.8% to $104 a barrel, with optimism surrounding alternative supply routes potentially alleviating West Asian oil exports to global markets. Despite the price drop, Brent oil remained above $100 a barrel, raising inflation worries for energy-dependent nations like India.
The potential impact of higher energy costs on corporate profits, the current account deficit, and the Reserve Bank of India's inflation control measures could temper market enthusiasm. Currently, five IPOs are open for subscription in India, with the National Stock Exchange's offering seeing a subscription rate of 0.43 times the issue size on its first day. High liquidity flow into these new offerings may divert capital away from established stocks, potentially curbing broader market gains.
The Nifty and Sensex indices have both slipped by 0.5% and 0.6%, respectively, this week, positioning them for a seventh week of decline. Foreign institutional investors have been net sellers for seven consecutive days, offloading ₹3,209 crore on Thursday alone. Indian institutions, however, have responded with purchases totaling ₹3,618 crore.
Bharat Electronics recently secured orders valued at ₹648 crore since August 26, while PTC India and NLC India Renewables formed a joint venture, Nirl PTC Renewables, with PTC holding a 25% share. PTC Infraprojects secured a ₹484 crore contract. The market regulator has prohibited telecom infrastructure firm Kore Digital from raising public funds and blocked its listing on the main exchange due to financial irregularities.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
