Indian shares poised for muted start, TCS kicks off earnings season

Business Recorder reported that Indian equities looked set for a softer opening on Thursday. On Wednesday the Reserve Bank of India moved its key policy rate up 25 basis points, to 5.5%, its first increase in almost four years. The central bank also changed its stance, away from a neutral position toward calibrated tightening, a signal that further hikes are possible, while rising oil prices added to inflation worries.

Brent crude gained 1.2%, trading above $101 a barrel, as concern over Middle East supply deepened after attacks on vessels in the Gulf and near the Hormuz Strait. Asian equities fell 0.3%, with government bond markets under pressure after reports that major technology companies were planning to borrow billions. GIFT Nifty futures at 22,600.5 pointed to a softer start for the Nifty 50, which closed Wednesday at 22,603.05.

Market participants will also keep an eye on Tata Consultancy Services, India's top software exporter, whose results open the September-quarter reporting season for big companies. Overseas investors sold Indian stocks totalling 61.21 billion rupees ($632.60 million) on Wednesday, a run of nine straight sessions of selling, according to provisional figures. Hariselvan Radhakrishnan of HST Wealth cautioned that prolonged tight monetary policy in India and abroad might weigh on risk sentiment and overseas fund movements.