Indian shares set for muted open as oil climbs on Mideast tensions
Indian shares likely to open flat as rising crude on Mideast risks and US rate hike fears weigh.
Indian equity benchmarks are expected to open little changed on Tuesday, following a slide to six-week lows in the previous session. The subdued tone comes as crude oil prices remain elevated on concerns that the Middle East conflict could widen, with Iran threatening retaliation against US assets and warning that Gulf energy infrastructure is vulnerable.
GIFT Nifty futures were trading near 23,800 points early Tuesday, indicating a muted start for the Nifty 50, which closed at 23,779.15 on Monday. Brent crude hovered around $97 per barrel, a level that poses a particular challenge for India, which imports roughly 85% of its crude requirements.
On Monday, both the Nifty and the Sensex closed at their lowest levels in six weeks, dragged down by IT stocks. Sentiment was hurt by escalating geopolitical tensions and growing expectations of a US interest rate hike. Market participants now await Friday's US inflation report, which is expected to shape views ahead of the Federal Reserve's policy decision on September 16.
Higher US rates tend to make dollar assets more attractive, potentially slowing foreign flows into emerging markets like India. On Monday, foreign investors were net buyers of Indian shares worth about 2.8 billion rupees ($29.6 million), after three straight sessions of selling.
In corporate news, logistics firm Shiprocket reported a narrower first-quarter loss, helped by its core shipping business. Neuland Laboratories approved a capital expenditure of 1.26 billion rupees to buy 134 acres in Andhra Pradesh. Meanwhile, Deepa Jeweller and Rays of Belief are set to list on exchanges on Tuesday following their IPOs last week.