Indian markets are set for a soft opening as Brent crude exceeds USD 110 per barrel amid geopolitical tensions. Investors are evaluating Eternal’s mixed results, where expansion costs impacted profits, alongside a fresh Rs 1,011 crore order for Bharat Electronics. Meanwhile, the Jio Platforms IPO has achieved full subscription, even as broader inflation concerns persist.
Indian stock markets are expected to open lower today as Brent crude prices have climbed above USD 110 per barrel. This rise, fueled by ongoing geopolitical tensions in West Asia, has put pressure on investor sentiment and is keeping the markets on edge for a third consecutive session.
In corporate news, Eternal has reported its recent financial performance. While the company's revenue beat market expectations, its profit fell short of projections. This was primarily due to increased spending on expansion within its quick-commerce unit, Blinkit. Management has signaled that growth in the quick-commerce business is expected to pick up from the December quarter as competition stabilizes, suggesting the focus remains on long-term market capture rather than immediate profit.
Bharat Electronics has strengthened its order book with a new set of contracts valued at Rs 1,011 crore. This continues the company's trend of securing regular orders since mid-October, providing clarity on its near-term business visibility.
On the broader economic front, the market is balancing these corporate updates with macroeconomic concerns. There is ongoing caution regarding potential interest rate hikes to manage inflation, which keeps liquidity sentiment uncertain. However, not all data is negative. Foreign Institutional Investors (FIIs) turned net buyers on Wednesday, purchasing shares worth Rs 1,022.32 crore. Additionally, the primary market remains active, with the Jio Platforms IPO seeing a strong response from institutional investors, achieving full subscription shortly after opening.
Investors may track how crude oil prices trend in the coming days, as energy costs impact input prices for many sectors. Future updates on Bharat Electronics' execution speed and Eternal’s ability to turn Blinkit's expansion into profitability will be important to follow.