(Reuters) - Indian stocks are set for a positive opening on Wednesday, likely boosted by foreign investors turning net buyers of domestic shares after offloading funds in their longest selling streak in six months.
India's NSE stock futures listed on the Singapore exchange were up 0.19% at 18,110.50, as of 7:28 a.m. IST.
Foreign institutional investors snapped their seventeen-day sales run, purchasing 2.11 billion rupees ($25.85 million) worth of equities on a net basis on Tuesday. They had sold shares worth 246.51 billion rupees ($3.02 billion) since Dec. 23.
Domestic valuations are not cheap after India outperformed major global benchmarks last year, and with China reopening its borders, funds are being reallocated to those markets where valuations are relatively attractive, analysts have said.
The blue-chip Nifty 50 index added 4.33% in 2022, while the MSCI's gauge of stocks across the globe slumped 19.8%.
Sustained gains in shares, however, will be seen if foreign investors continue to allocate funds to the market.
Meanwhile, a rise in oil prices, their highest in over six weeks, could cap gains as they are a negative for oil-importing countries like India, where crude constitutes the bulk of the country's import bill. [O/R]
STOCKS TO WATCH
** Sugar stocks: India has contracted to export about 5.6 million tonnes of sugar since the government said late last year that mills could ship up to 6.1 million tonnes of the sweetener by May, government, trade and industry sources told Reuters.
** Adani Enterprises and Ashok Leyland: Adani Enterprises said it has signed an agreement with Ashok Leyland and Canada's Ballard Power to launch a pilot project to develop a hydrogen fuel cell electric truck for mining logistics and transportation.
** Eris Lifesciences and Glenmark Pharmaceuticals: Drugmaker Eris Lifesciences said it would buy a portfolio of dermatology brands from Glenmark Pharmaceuticals for 3.4 billion rupees ($41.63 million) to deepen its presence in the anti-fungal and anti-psoriasis segments.
** ICICI Lombard: Co's net profit rises in December quarter, net premium earned grows 14.5% in Q3.
** ICICI Prudential Life: Net profit falls 29% in third quarter to 2.21 bln rupees.