Indian shares seen opening lower as crude prices top $100 on Mideast uncertainty

India’s equity benchmarks are likely to open lower on Thursday, as Brent Crude prices topped $100 a barrel, after ​Iran seized two ships in the Strait of Hormuz, ‌and with no signs of peace talks restarting.

GIFT Nifty futures were trading at 24,158 points, as of 8:02 a.m. IST, indicating that the ​benchmark Nifty 50 would open below Wednesday’s close ​of 24,378.1.

Brent Crude prices rose for the fourth consecutive ⁠session to $102 per barrel amid uncertainty over peace talks ​in the Middle East.

Global brokerage firm HSBC downgraded Indian equities ​to “underweight” from “neutral”, citing the country’s reliance on imported energy and potential knock-on effects on inflation and domestic demand.

India imports a bulk of its ​crude and gas requirements, and a prolonged spike in ​prices could worsen the growth and inflation outlook for the economy.

Foreign investors ‌sold ⁠Indian shares worth 20.78 billion rupees ($221.56 million) on Wednesday, as per provisional data. This was their second consecutive session of selling, after earlier turning buyers for four sessions.

Meanwhile, investors will ​react to ​earnings from benchmark ⁠Nifty 50 constituents SBI Life Insurance and apparel retailer Trent.

SBI Life Insurance’s net profit declined ​marginally during January-March, due to a one-third ​rise in ⁠operating expenses.

Trent posted a 26% jump in quarterly profit, as demand ticked up following last year’s consumption tax cuts, with ⁠its ​board also approving a maiden bonus ​share issue and a fund raise of up to 25 billion rupees.