INDIA STOCKS-Indian shares set to rise, with Adani Group, budget, Fed on watch
BENGALURU, Jan 31 (Reuters) - Indian shares are set to open higher on Tuesday, the final day of Adani Enterprises' mega secondary share sale and a day ahead of the Union budget, with investors also keeping an eye out for interest rate decisions by global central banks later this week.
India's NSE stock futures listed on the Singapore exchange were up 0.47% at 17,789 as of 08:11 a.m. IST. Asian markets were 0.51% lower.
Indian snapped a losing streak on Monday as key Adani Group stocks arrested their two-session tumble since U.S-based short-seller Hindenburg Research, last week, flagged concerns about the groups' debt levels and the use of tax havens, charges the conglomerate has denied. The report also weighed on banks, on worries about their loan exposure to the group.
Still, the group's seven listed companies have lost $65 billion in market value since the report, while the flagship Adani Enterprises' stock is well below the offer price of its crucial $2.5 billion follow-on share offering, which has seen only 3% subscription in the first two days.
Investors will also shift focus to India's Union budget on Feb. 1, with the government's fiscal consolidation path and borrowing calendar for fiscal 2024 seen as key triggers.
Traders will also watch the budget for any incentives to entice foreign investors, who have piled out of the market, especially since the report on Adani Group.
Foreign institutional investors have sold 151.65 billion rupees ($1.86 billion) worth of shares on a net basis in the past three sessions.
The Federal Reserve's rate decision is due on Wednesday, with the focus on future monetary policy, which is key for Indian firms, especially IT companies, that have major exposure to the United States.
Besides the Fed, rate decisions from the European Central Bank and the Bank of England are also due this week.
Aiding domestic equities could be oil prices, which fell over 2% ahead of OPEC+ group meeting and on indications of a strong Russian supply. A fall in prices is a positive for oil importers like India.
STOCKS TO WATCH
** Larsen & Toubro: The company reported a lower-than-expected rise in consolidated net profit in third quarter on moderate order growth.
** Tech Mahindra: The company reported a fall in quarterly consolidated net profit due to higher costs and a moderation in demand.
** KEC International: The company bagged new orders worth 11.31 billion rupees.
** Bharat Petroleum: The company posted a slide in quarterly net profit on stagnant retail prices. ($1 = 81.5930 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)