Nifty, Sensex poised for higher open, fuelled by Asian markets and strong ICICI Bank results

Stock market news: Indian equities are set to start the week on a positive note, mirroring gains in Asian markets, with a boost expected for financial stocks following ICICI Bank's robust quarterly performance.

As of 08:15 am, GIFT Nifty was trading at 22,642, indicating a higher opening for the Nifty 50 above its Friday close of 22,419.95.

Last week, the domestic benchmark indexes enjoyed weekly gains, driven by stable Indian corporate earnings and reduced concerns about a significant escalation in the Middle East conflict.

Asian markets opened on a positive note, buoyed by strong gains in US equities fueled by impressive quarterly results from Alphabet and Microsoft, along with in-line inflation data.

ICICI Bank, India's second-largest private lender, posted a better-than-expected 17.4 per cent increase in quarterly profit and margins over the weekend, setting a positive tone for the financial sector.

Vinod Nair, head of research at Geojit Financial Services, said, “Quarterly earnings reports are poised to influence the domestic market dynamics.”

“Friday's trading session marked a pause in the stock market's vigorous momentum, attributed to disappointing US GDP growth, mounting price pressures in the US, and lackluster Q4 earnings reports from corporate India. Monday's market commenced with the Gift Nifty showing upward movement, propelled by a strong finish on Wall Street,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

“Investors are now closely monitoring forthcoming events such as the FOMC meeting decision and the April jobs report. All eyes are on Powell's press conference amid speculation surrounding potential alterations to the Fed's independence,” he added.

“Today, the market awaits Q4 results from several Indian companies, while copper prices surge towards their highest levels in two years. Before delving into specifics, recommended trades for Nifty and Bank Nifty are outlined, alongside bullish stock selections and a top recommendation to buy IRCTC,” Tapse said.

Investor attention will also be on Maruti Suzuki and HCLTech, with the former missing profit estimates for the March quarter due to higher input costs, while the latter reported smaller-than-expected revenue for the same period.

Institutional investor activity remained noteworthy, with foreign institutional investors selling Indian shares for the fifth consecutive session on Friday, while domestic institutional investors bought shares worth Rs 4,357 crore on a net basis.

Key stocks to watch include SBI Cards and Payment, which reported a surprise rise in quarterly profit, and Mahindra Lifespace, which declared a dividend of Rs 2.565 per share alongside a rise in March-quarter profit.

Additionally, market focus will be on key earnings reports from Ultratech Cement, Trent, and KPIT Technologies.

(With Reuters inputs.)