There are indications that the Indian stock market will start with pressure on Monday, the first day of the business week. At around 7:30 am, GIFT Nifty was trading at 24,237, down 75 points or 0.31 percent. Due to this, there are indications of weak initial trading in the domestic equity market.
In Monday's trading, apart from the increasing tension between America and Iran, rise in crude oil prices and fall in Gift Nifty, important corporate news related to many companies including Reliance Industries, HDFC Bank, Cipla, LIC Housing Finance will be in focus.
On Sunday, news of the US military targeting two Iranian rocket launch systems in the Larak Island area near the Strait of Hormuz came to light. This is said to be the first known US military action in Iranian territory since the end of July. After this incident, geopolitical tension has increased again in West Asia.
Increasing tensions in the Middle East may impact the world energy market. The Strait of Hormuz is one of the most important oil transportation routes in the world. Any instability in the region could increase concerns about crude oil supplies and prices. For major oil importing countries like India, rising crude oil prices could impact market sentiment and inflation concerns.
According to technical analysts, some key levels will be important for Nifty in the coming sessions. If the index maintains strength above Friday's high and 50-day EMA around 24,190, a rise towards 24,300 to 24,350 levels may be possible. On the other hand, if Nifty breaks below the weekly low of 24,076, then the area of 24,000 and subsequently 23,800 may become important support zones. Investors will also keep an eye on global indicators, movement of crude oil and activities of foreign investors.
LEAP India, Milky Mist Dairy Food, Setco Automotive, Cresanda Railway Solutions, Duchepalli Publishers and Standard Surfactants are expected to release their quarterly financial results on Monday. The market will keep an eye on the revenue, profits and future outlook of these companies.
Reliance Industries' digital and technology subsidiary Jio Platforms is reported to have received an Observation Letter from market regulator SEBI on the Draft Red Herring Prospectus (DRHP) filed for the proposed IPO. This development is linked to the company's progress towards a possible public offering.
HDFC Bank investors will keep an eye on the developments related to leadership. The bank's Managing Director and CEO Shashidhar Jagdishan has decided not to seek re-appointment. After this, the market will pay attention to the signals related to the future leadership strategy of the bank and the successor.
The US FDA has placed the inspection of Manufacturing Unit-3 of Invagen Pharmaceuticals, the American subsidiary of pharmaceutical company Cipla, in the Voluntary Action Indicated (VAI) category.
Axiscades Technologies plans to buy up to 90 per cent stake in Bengaluru-based Cloud Wave Technologies for about Rs 234 crore. The company can also acquire the remaining stake later.
Max Estates has entered into a Share Purchase Agreement to purchase the entire stake in promoter-owned companies covering approximately 84.71 acres of land in West Delhi.
Avantel has received an order worth approximately Rs 117.88 crore from DRDO for development, installation and commissioning of Ground Segment Hub for Voice and Data Communication.
Ashoka Buildcon has received Letter of Award (LoA) worth approximately Rs 602.16 crore from Rail Vikas Nigam for supply and commissioning of Electromechanical System.
Apart from this, corporate updates related to Aurobindo Pharma, NBCC, Tata Chemicals and LIC Housing Finance will also be on the radar of investors. LIC Housing Finance has approved the appointment of Sandeep Kumar as Additional Director and MD and CEO.