Indian shares seen declining as oil rises after US-Iran talks collapse

Indian shares are poised to open lower on Monday, tracking Asian peers as oil surged above $100 a barrel after US-Iran peace talks ​failed to make progress, heightening the risks to economic growth ‌and corporate profitability.

GIFT Nifty futures were trading at 23,756.5 as of 7:43 a.m. IST, indicating that the benchmark Nifty 50 will open about 1.2% below Friday’s close ​of 24,050.60.

Both benchmarks, Nifty and Sensex, rose about 6% last week, ​posting their best showing in over five years as investors ⁠took comfort from a fragile U.S.-Iran ceasefire.

However, negotiations between the two ​countries in Islamabad ended in a stalemate. U.S. President Donald Trump on ​Sunday said the U.S. Navy would itself start blockading the Strait of Hormuz, intensifying geopolitical tensions and sending oil prices higher.

Brent crude jumped about 7% to $102 per barrel. Other ​Asian markets fell about 1%.

Markets are likely to shift back into a ​risk-off mode as investors assess March quarter earnings, said two analysts, adding that elevated ‌crude ⁠prices, geopolitical uncertainty, and persistent foreign outflows will act as key overhangs on Monday.

Foreign portfolio investors (FPIs) sold Indian stocks worth $5.15 billion so far in April, after offloading a record $12.7 billion in March.

While FPI outflows have intensified, inflows ​into equity mutual ​funds from domestic ⁠investors climbed to an eight-month high of $4.4 billion in March, helping limit the market decline.

The Nifty and the Sensex ​are down about 4.5% each since the start of ​the Iran ⁠war.