Indian shares were set to open lower on Tuesday as rising tensions in the Middle East and firm oil prices hurt risk appetite, while quarterly results were expected to drive moves in individual stocks.
GIFT Nifty futures were trading at 24,151.5 as of 7:55 a.m. IST, indicating the Nifty 50 could open below Monday’s close of 24,238.50.
Broader Asian markets traded lower, tracking overnight losses on Wall Street as Brent hovered around $90 a barrel.
Caution deepened after Yemen’s Iran-aligned Houthis said they would impose a naval blockade on Saudi Arabia, raising the threat to global energy supplies and trade beyond the Gulf.
The threat coincided with reports of mediation efforts between the U.S. and Iran against an exchange of fresh attacks between the two.
Higher oil prices matter for India because the country is the world’s third-largest crude importer, and costlier imports can lift inflation, widen the trade gap and squeeze corporate profits.
Foreign portfolio investors sold Indian equities worth 11.21 billion rupees, or $116.2 million, on Monday, while domestic institutional investors bought shares worth 13.12 billion rupees, according to provisional NSE data.
The Nifty 50 and the Sensex fell 0.4% and 0.6%, respectively, on Monday, dragged down by private banks after quarterly earnings signalled pressure on net interest margins.
HDFC Bank will be in focus after the stock fell 5.1% on Monday in its biggest daily drop in four months.
Reuters reported the lender is awaiting an additional review by independent directors before recommending CEO Sashidhar Jagdishan’s reappointment to the Reserve Bank of India, citing three sources.
SBI Funds Management will also be in focus as it makes its market debut after last week’s $1.03 billion initial public offering, supported by strong growth prospects in India’s $873 billion asset management industry.
Sobha shares could gain after the realty developer reported a fourfold rise in its June-quarter profit.
Bajaj Auto, TVS Motor, Granules India and Adani Total Gas are scheduled to report their quarterly results later in the day.
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