Indian shares set to open higher tracking Asian peers

BENGALURU (Reuters) – Indian shares are set to open marginally higher on Friday, tracking Asian peers on hopes of measures to support economic recovery in China.

India’s GIFT Nifty on the NSE International Exchange was up 0.16% at 19,483, as of 8:13 a.m. IST

Both the Nifty 50 and Sensex slid 2% each over the last two sessions as Fitch’s downgrade of the United States’ credit rating dampened sentiment.

Asian equities rose on Friday, led by gains in Chinese and Hong Kong markets after data indicated expansion in services activity in the world’s second-largest economy.

China’s central bank governor pledged on Thursday to support the private sector in the country, raising hopes for the extension of stimulus to revive the economy.

Wall Street equities closed marginally lower overnight, with the Nasdaq Composite index and S&P 500 extending the slide to the third session in a row after Fitch’s downgrade of the United States’s credit rating. [MKTS/GLOB]

“Investors should focus on risk management as selling pressure may continue,” said Ajit Mishra, senior vice president – technical research at Religare Broking.

Despite the slide in benchmarks Nifty 50 and Sensex on Thursday, the mid-caps and small-caps edged higher.

While large-caps are priced to perfection, which limited their upside, there are plenty of buying opportunities in broader markets, said two analysts.

The Nifty 50 has lost 1.35% this week. If losses hold, it will be the worst week for the 50-stock index in over four months.

Foreign institutional investors (FIIs) sold 3.17 billion Indian rupees ($38.32 million) worth of shares on a net basis on Thursday, while domestic institutional investors (DIIs) bought 17.29 billion rupees of equities, as per provisional NSE data.


** Bharti Airtel: Co beats first-quarter revenue view on 4G subscriber growth.

** Maruti Suzuki: Co to consider mode of discharging consideration for the acquisition of 100% equity stake of Suzuki Motor in Suzuki Motor Gujarat on August 8.

** Eicher Motors: Co tops profit estimates in June quarter on strong Royal Enfield sales.

** Key earnings on Friday: State Bank of India, Mahindra and Mahindra.

($1 = 82.7280 Indian rupees)

(Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru)