Indian shares poised to rebound as Fed-hike fears, oil prices ease

Indian shares were set to open higher on Monday after posting their longest weekly losing streak in 25 years, supported by easing concerns over aggressive US monetary tightening ​and a pullback in oil prices.

GIFT Nifty futures were trading at 22,639 points, ‌as of 7:57 a.m. IST, indicating a positive start for the benchmark Nifty 50 index, which closed at 22,421.95 on Thursday. Indian markets were closed on Friday for a public holiday.

Both the Nifty 50 ​and the Sensex logged their eighth straight weekly decline last week, pressured by record ​foreign selling, elevated crude oil prices and a sharp rise in global ⁠bond yields that dampened risk appetite.

Market sentiment improved after softer-than-expected US jobs data reduced expectations ​of a Federal Reserve rate hike later this month, offering relief to emerging-market assets.

Oil prices ​are also expected to provide support, with Brent crude slipping 0.6% to $101.6 per barrel on Monday as higher Middle East exports and coordinated stock releases by Group of Seven nations eased near-term supply concerns.

Other Asian ​stock markets rose 0.2%.

Foreign portfolio investors (FPIs) remained net sellers for the sixth straight session on ​Thursday, offloading stocks worth 94.84 billion rupees, according to provisional NSE data. Domestic institutional investors (DIIs) purchased equities ‌worth ⁠100.42 billion rupees.

Weaker US economic data has pushed the probability of an October Fed rate hike below 25%, supporting sentiment across emerging markets, two traders said, adding that a sustained recovery in Indian equities would need a further easing in oil prices and a slowdown in ​foreign outflows.

Among stocks, HDFC ​Bank will be in ⁠focus after the country’s largest private lender named Anup Bagchi as its next CEO for a three-year term.

Bagchi, currently MD and CEO ​of ICICI Prudential Life Insurance, will become the first external candidate to ​lead HDFC ⁠Bank.