Indian shares were poised to open slightly higher on Thursday, but caution prevailed as investors awaited quarterly earnings from major companies amid weak global cues. India's NSE stock futures listed on the Singapore exchange were up 0.23% at 17,693.50 as of 8:13 a.m. ET.
HCL Technologies Ltd (HCLT.NS) is scheduled to report its earnings on Thursday and Reliance Industries Ltd (RELI.NS), India's top firm by market capitalization, will report their earnings on Friday. The benchmark Nifty 50 (.NSEI) has lost 1.17% so far this week due to disappointing earnings reports of leading information technology (IT) companies Tata Consultancy Services Ltd (TCSNS) and Infosys Ltd (INFY.NS).
Foreign institutional investors (FIIs) have also turned net sellers of Indian equities over the last three sessions, offloading ₹131.7 million ($1.6 million) in stocks on Wednesday.
Global equities remained subdued with rising odds of the U.S Federal Reserve delivering a 25 basis points rate hike at its upcoming meeting in May; investors are also digesting the latest earning reports.
"The ongoing uncertainty created by mixed economic data globally keeps traders watchful," said Anil Kumar Singhvi, Chief Market Strategist at Zee Business News Channel.
The U.S dollar-denominated bonds issued by entities of India's Adani Group traded marginally higher on Thursday after an announcement that one group company would consider buying back securities surfaced. Dollar bonds belonging to Adani Ports, Adani Transmission, and Adani Green Energy(ADNA.NS) all experienced slight increases in trading activity following the news.
Group company bonds had plunged earlier when Hindenburg Research released a scathing report questioning the conglomerate’s debt levels and use of tax havens on January 24. India's market regulator is now looking into the allegations presented by Hindenburg, as well as scrutinizing the group's related party dealings, following a directive from the Supreme Court.
"Adani Group companies' performance in the coming quarters will be crucial to restoring investor confidence," said Ramesh Damani, an independent financial analyst based in Mumbai.
As earnings season continues and global economic uncertainties persist, Indian markets are likely to remain cautious and watchful for any potential impact on stocks.