India's benchmarks seen higher tracking Asian peers

 India's benchmarks seen higher tracking Asian peers Refinitiv2 min read

NIFTY +0.14%

SENSEX +0.04%

CNXFINANCE +0.11%

NCC +5.80% India's benchmark indexes are likely to open higher on Wednesday, mirroring other Asian peers, as investors await clarity on the impending U.S. tariffs.

The GIFT Nifty futures (GIFc1) were trading at 23,766, as of 8:06 a.m. IST, indicating the blue-chip Nifty 50 index NIFTY will open above Tuesday's close of 23,668.65.

The Nifty and BSE Sensex SENSEX have risen 5.7% in the last seven sessions, turning positive for year-to-date, as foreign capital inflows and hopes of improved domestic macroeconomic factors drove bargain buying.

Foreign portfolio investors (FPIs) were net buyers in India for the fourth consecutive session on Tuesday, the longest daily streak of inflows in six months.

Overseas investors bought shares worth 53.72 billion rupees ($627.1 million) on Tuesday and worth 191.37 billion rupees in the last four sessions, per provisional data.

Analysts expect the looming U.S. tariff threat to cap the domestic market gains in the near term.

On Monday, U.S. administration indicated that not all of President Donald Trump's threatened tariffs will be imposed on April 2, but there was no clarity on who will be spared.

India is open to cutting tariffs on more than half of U.S. imports worth $23 billion in the first phase of a trade deal the two nations are negotiating, Reuters reported on Tuesday, citing sources.

China and Hong Kong shares led Asian markets higher on the day, with MSCI Asia ex-Japan (.MIAPJ0000PUS) up 0.6%.

STOCKS TO WATCH

** Financials CNXFINANCE will be in focus after S&P Global Ratings says tightening microfinance regulations may rein growth plans for lenders

** NCC NCC bags 108.05 billion rupee order from Bharat Sanchar Nigam Ltd (BSNL)

** Oil and Natural Gas Corp ONGC to invest 33 billion rupees in ONGC Green Ltd. State-owned company also says subsidiary ONGC Videsh Ltd (OVL) to invest 15 billion rupees in Beas Rovuma Energy Mozambique

** Goldman Sachs reiterates "buy" on HDFC Bank HDFCBANK , saying the private lender's stock is ripe for re-rating citing market share gains in deposits, loan growth in core segments and stable asset quality

** Oil companies will be in focus as Brent crude prices rose on concerns of tighter supplies after Trump threatened tariffs against countries importing oil and gas from Venezuela and after U.S. crude inventories fell more than expected

($1 = 85.6660 Indian rupees)