Indian shares set to gain as soft US jobs data offsets oil worries

Indian shares are on track to open higher on Monday, tracking Asian peers after a weaker-than-expected US jobs report eased fears of a near-term Federal Reserve rate ​hike, while a rise in oil prices kept a lid on ‌sentiment.

GIFT Nifty futures were at 24,670.5 points, as of 7:43 a.m. IST, indicating a positive start for the Nifty 50, which closed at 24,570.65 on Friday.

While markets could open higher, the rise ​in crude prices, volatility from a new closing-auction mechanism for stocks with linked ​derivatives and concerns over the Reserve Bank of India’s draft proposal to ⁠curb flexible loans offered by non-bank lenders could cap gains, said two analysts.

Asian shares ​tracked Wall Street equities higher on Monday as the risk of a near-term rise ​in borrowing costs eased, a positive for foreign fund flows into emerging markets.

Brent crude rose 1.1% to about $84.50 a barrel as uncertainty persisted over the reopening of the Strait of Hormuz, heightening ​inflation concerns and risks to growth for oil-import-dependent India.

Iran said an agreement with Oman ​on new shipping lanes was nearing completion, but reiterated that the United States must meet other ‌conditions before ⁠the waterway can reopen.

Tehran would not hold talks with Washington while the United States breaches the June interim deal, Iranian foreign minister Abbas Araqchi said.

Supply risks were further heightened after a Saudi oil facility was attacked over the weekend.

Domestic equity benchmarks Nifty ​50 and Sensex gained ​0.8% and 0.5%, ⁠respectively, last week, as the central bank held interest rates steady, crude prices eased, foreign inflows remained supportive and corporate earnings ​stayed resilient.

Foreign portfolio investors purchased domestic stocks worth $1.36 billion last ​week, after ⁠buying $2.12 billion of shares in July.