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Indian Shares Likely To See Mixed Start

The Indian stock market is likely to open on a mixed note on Monday, with investors tracking mixed cues from peers in Asia and reacting to fourth quarter results from Reliance Industries and HDFC Bank.

The rupee's movements and crude oil prices will also impact the market. After struggling during the early part of the previous week, the Indian rupee recovered on Thursday. A fairly sharp rise in crude oil prices after the U.S. threatened tougher sanctions against Iran could hurt sentiment.

Reliance Industries reported consolidated net profit of Rs 10,362 crore for the quarter ended March 2019, an increase of 9.8% over the year-ago quarter. Net sales rose 18.6% in the fourth quarter.

HDFC Bank on Saturday reported a strong 22.6% year-on-year surge in net profit to Rs 5,885.12 crore in the fourth quarter ended March 2019. The bank's net interest income rose 22.8% in the quarter.

Percentage of gross NPA stood at 1.36% as of March 31, 2019, against 1.38% as on December 31, 2019. Net NPA was 0.4% at the end of the fourth quarter.

Movements at some prominent counters are likely to be a bit volatile at times due to the upcoming expiry of near month derivatives contracts this Thursday.

Also, with several top notch companies including, ACC, Axis Bank, Maruti Suzuki, Hero Motocorp, Yes Bank, UltraTech Cement and Tata Steel are scheduled to announce their fourth quarter earnings this week, investors are likely to tread a bit cautiously.

Anxiety about the outcome of the ongoing Lok Sabha elections and worries about global economic slowdown are the other factors that will be weighing on the market.

A big positive for the market, however, is the sustained inflow of funds from overseas investors. According to data, foreign portfolio investors are net buyers to the tune of over Rs 11,000 crore so far this month, after having purchased shares worth a net Rs 57,000 crore (approximately) in February-March.

The weather office's forecast for a near normal monsoon is another positive trigger for the market.

The market, which was closed on Friday for Good Friday, ended weak on Thursday, snapping a four-day winning streak. The Sensex lost about 0.34% and the Nifty ended lower by 0.29%, at 39,140.28 and 11,752.80, respectively.

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