Indian shares are likely to open higher on Tuesday, tracking a climb in Asian peers, as traders gauged a record overnight finish on Wall Street and a slump in crude oil prices.
The Gift Nifty was trading at 25,236, as of 7:44 a.m. IST, indicating that the benchmark Nifty 50 will open above Monday’s close of 25,127.95. Oil prices slid 3% after a media report said Israel is willing not to strike Iranian oil targets, easing fears of a supply disruption.
A fall in oil prices is positive for India, the world’s third-largest oil importer, as the commodity makes up a significant part of the country’s import bill.
After posting two straight weekly losses, the Nifty and the S&P BSE Sensex indexes each closed about 0.7% higher on Monday at the start of an earnings-packed week, led by heavyweight financials.
Hyundai Motor India’s $3.3 billion IPO, the country’s largest share offering, opens to the public later in the day after securing investments from major investors including BlackRock and Fidelity. Asian peers outside Japan inched 0.13% higher.
Wall Street equities closed higher overnight, as investors bought into technology stocks.
IT, banks boost Indian shares; domestic inflation data eyed
Foreign institutional investors offloaded net 37.32 billion rupees ($444 million) worth of stocks on Monday, and were net sellers for an eleventh consecutive session.
Domestic investors net bought shares worth 22.78 billion rupees.
Meanwhile, higher food prices pushed India’s retail inflation to a nine-month high in September, government data showed after market close on Monday.
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