Indian shares set for muted open as oil prices climb on US-Iran impasse
GIFT Nifty futures point to a subdued start for Indian equities as rising crude prices and a US-Iran stalemate keep investors cautious.
Indian equities are headed for a soft opening on Monday, with early indications pointing to little movement as investors stay on the sidelines amid elevated crude prices and an unresolved standoff between Washington and Tehran.
GIFT Nifty futures were quoted at 23,111 points at 7:41 a.m. IST, suggesting a muted start for the Nifty 50, which ended Friday at 23,140.5. Asian markets were trading 0.2% lower.
Brent crude futures rose 1.5% to around $106 a barrel after US President Donald Trump said he had turned down an Iranian proposal to reopen the Strait of Hormuz and halt fighting. Iran maintained on Sunday that diplomacy is the only route to resolving its conflict with the United States and Israel.
Oil has been in focus since late February, when joint US and Israeli strikes on Iran set off a war in the Middle East. For India, the world's third-largest crude importer, costlier oil poses a risk to inflation, the import bill and corporate margins.
The Nifty 50 and BSE Sensex have now declined for seven straight sessions, shedding nearly 6% — one of their longest weekly losing runs on record.
Foreign investors sold Indian shares worth 36.94 billion rupees ($385.54 million) on a net basis on Friday, provisional data showed. Their September outflows stand at $1.8 billion, taking year-to-date selling to $25.86 billion.
Among stocks in focus, precision engineering firm Aequs has approved preferential issuance of warrants worth up to 6.5 billion rupees, including to its promoter group, as it evaluates opportunities across its aerospace and consumer businesses. Augment India Holdings is likely to offload a 7.25% stake in Clean Max Enviro through a block deal at a 10% discount to the prevailing market price.