India stock benchmarks set for muted open; crude-driven volatility to remain high
- GIFT Nifty futures were trading at 23,450
India’s equity benchmarks are expected to open little changed on Tuesday, though volatility is likely to stay elevated as investors remain wary of the impact of higher-for-longer Brent crude prices amid the prolonged Middle East war.
GIFT Nifty futures were trading at 23,450 as of 07:21 a.m. IST, indicating the Nifty 50 will open near Monday’s close of 23,408.8.
Brent crude hovered around $103 a barrel on supply concerns, with the Strait of Hormuz mostly shut and US allies refusing to send warships to help tankers navigate the key chokepoint that handles about 20% of global oil supplies.
Brokerages Citi and Nomura lowered their year-end Nifty targets on Monday, citing the impact of the surge in crude prices on India’s growth and corporate earnings.
The Nifty and Sensex have fallen about 7% each so far this month, as investors assessed the fallout from the US-Israeli war on Iran.
Foreign investors sold shares worth 93.66 billion rupees ($1.01 billion) on Monday, provisional data showed, in their twelfth straight session of selling. Outflows this month have reached $6.9 billion.
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