Indian shares seen muted as Iran tensions lift oil prices, dampen risk mode
- Nifty 50 would open near Tuesday’s close of 23,483.55
Indian shares are on track to open flat on Wednesday as uncertainty over a U.S.-Iran peace deal kept investors risk-averse, while higher oil prices and persistent foreign outflows also weighed on sentiment.
Gulf hostilities flared anew, with the U.S. military saying Iranian missile attacks on Bahrain, Kuwait and other regional targets either were thwarted or unsuccessful, as diplomacy between Washington and Tehran showed little progress.
The flare-up pushed Brent crude prices up 1.1% at $97 per barrel, while GIFT Nifty futures were at 23,474, as of 7:53 a.m. IST, indicating the benchmark Nifty 50 would open near Tuesday’s close of 23,483.55.
“While strong domestic liquidity is providing an important buffer, a more durable improvement in sentiment is likely to require greater clarity on the geopolitical front and a sustained easing in energy prices,” said Ponmudi R, chief executive officer at Enrich Money.
Foreign investors sold Indian shares worth 83.63 billion rupees ($877.91 million) on Tuesday, marking a third consecutive session of selling and adding to their record selloff in the country this year, provisional data showed.
On the other hand, domestic institutional investors bought shares worth 95.89 billion rupees and helped the benchmark indexes snap a four-session losing streak.
IT companies will be in focus as global software stocks dropped on profit-booking following a recent rally.
American-listed shares of Infosys and Wipro dropped 2.5% and 8.3%, respectively, overnight.
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