BENGALURU: Indian shares are set to open marginally higher on Tuesday, following the rise in the previous session, as global cues improved on progress in US debt ceiling talks.
India’s NSE stock futures listed on the Singapore exchange were up 0.15% at 18,362.50 as of 8:11 a.m. IST.
Most Wall Street equities closed higher on Monday after debt ceiling talks resumed in the US While an agreement could not be reached, both President Joe Biden and House Republican Speaker Kevin McCarthy vowed to continue negotiations to reach a consensus, with just 10 days remaining before a potential default.
A failure to lift the debt ceiling would trigger not only a default, but also a spike in interest rates, analysts cautioned.
Asian markets were mostly higher. Indian shares extended gains for the second session in a row on Monday, powered by information technology (IT) and metal stocks.
In a report on Monday, credit ratings provider S&P Global Ratings said Indian IT companies have ‘good defenses against downside risks,’ and cited strong balance sheets, high recurring cash flows and execution track record as reasons for the positive view.
Foreign institutional investors (FIIs) resumed their buying Indian equities on Monday, purchasing 9.23 billion rupees ($112.9 million) worth of equities.
“Consistent foreign buying has resulted in an extension of upmove in the Nifty,” said Deepak Jasani, head of retail research at HDFC Securities.
Adani stocks power Indian shares ahead of US debt ceiling talks
“18,218-18,432 could be the band for the Nifty in the near term.” The Nifty 50 has risen nearly 3% since the beginning of the March-quarter earnings season on April 12.
The rise was also powered by Foreign Portfolio Investors (FPI) buying domestic equities, which hit a six-month high in the first half of May.
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